At the beginning of the current year , Flash Company had retained earnings of P4,000,000 . During the year , the entity reported net income of P2,000,000 , sold treasury shares at a " gain " of P720,000 , declared a cash dividend of P1,200,000 , and declared and issued a small share dividend of 60,000 shares with P10 par value when the fair value of the share was P20 . What is the amount of retained earnings available for dividends at the end of the current year ? a. 3,600,000 b. 4,200,000 c. 4,320,000 d. 4,920,000
At the beginning of the current year , Flash Company had retained earnings of P4,000,000 . During the year , the entity reported net income of P2,000,000 , sold treasury shares at a " gain " of P720,000 , declared a cash dividend of P1,200,000 , and declared and issued a small share dividend of 60,000 shares with P10 par value when the fair value of the share was P20 . What is the amount of retained earnings available for dividends at the end of the current year ? a. 3,600,000 b. 4,200,000 c. 4,320,000 d. 4,920,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 9RE: For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the...
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Question
At the beginning of the current year , Flash Company had
a. 3,600,000
b. 4,200,000
c. 4,320,000
d. 4,920,000
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