Doffy Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the retained earnings amounted to P 3,000,000. In March 2016, the entity reacquired 50,000 treasury shares at P 20 per share. In June 2020, the entity sold 10,000 of these shares to corporate officers for P25 per share. The entity used the cost method to record treasury shares. Net income for the year ended December 31, 2020 was P600,000. a. What is the total amount of retained earnings at year-end? a. 4,400,000 b. 2,200,000 c. 3,600,000 d. 3,400,000 b. What amount should be reported as unappropriated retained earnings at year-end? a. 3,600,000 b. 3,650,000 c. 3,750,000 d. 2,800,000
Doffy Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the retained earnings amounted to P 3,000,000. In March 2016, the entity reacquired 50,000 treasury shares at P 20 per share. In June 2020, the entity sold 10,000 of these shares to corporate officers for P25 per share. The entity used the cost method to record treasury shares. Net income for the year ended December 31, 2020 was P600,000. a. What is the total amount of retained earnings at year-end? a. 4,400,000 b. 2,200,000 c. 3,600,000 d. 3,400,000 b. What amount should be reported as unappropriated retained earnings at year-end? a. 3,600,000 b. 3,650,000 c. 3,750,000 d. 2,800,000
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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...
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Doffy Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the retained
earnings amounted to P 3,000,000.
In March 2016, the entity reacquired 50,000 treasury shares at P 20 per share. In June 2020, the entity sold
10,000 of these shares to corporate officers for P25 per share. The entity used the cost method to record treasury
shares.
Net income for the year ended December 31, 2020 was P600,000.
a. What is the total amount of retained earnings at year-end?
a. 4,400,000
b. 2,200,000
c. 3,600,000
d. 3,400,000
b. What amount should be reported as unappropriated retained earnings at year-end?
a. 3,600,000 b. 3,650,000 c. 3,750,000 d. 2,800,000
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