Haru Corporation reported the following shareholders’ equity on January 1, 2020. > Ordinary Share Capital- P1,500,000 > Ordinary share Premium- P3,000,000 > Retained Earnings- P2,000,000 The corporation had 400,000 authorized shares of P 5 par value, of which 300,000 shares were issued and outstanding. On March 1, 2020, Haru Corporation acquired 50,000 shares for P10 per share to be held as treasury. These shares were originally issued at P8 per share. On December 31, 2020, the corporation declared and distributed property dividend with a carrying value of P750,000 and a P1,000,000 fair value. The net income for 2020 was P 2,500,000. What amount should be reported as Unappropriated Retained Earnings on December 31, 2020?
Haru Corporation reported the following shareholders’ equity on January 1, 2020. > Ordinary Share Capital- P1,500,000 > Ordinary share Premium- P3,000,000 > Retained Earnings- P2,000,000 The corporation had 400,000 authorized shares of P 5 par value, of which 300,000 shares were issued and outstanding. On March 1, 2020, Haru Corporation acquired 50,000 shares for P10 per share to be held as treasury. These shares were originally issued at P8 per share. On December 31, 2020, the corporation declared and distributed property dividend with a carrying value of P750,000 and a P1,000,000 fair value. The net income for 2020 was P 2,500,000. What amount should be reported as Unappropriated Retained Earnings on December 31, 2020?
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
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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Haru Corporation reported the following shareholders’ equity on January 1, 2020.
> Ordinary Share Capital- P1,500,000
> Ordinary share Premium- P3,000,000
> Retained Earnings - P2,000,000
The corporation had 400,000 authorized shares of P 5 par value, of which 300,000 shares were issued and outstanding. On March 1, 2020, Haru Corporation acquired 50,000 shares for P10 per share to be held as treasury. These shares were originally issued at P8 per share. On December 31, 2020, the corporation declared and distributed property dividend with a carrying value of P750,000 and a P1,000,000 fair value. The net income for 2020 was P 2,500,000. What amount should be reported as Unappropriated Retained Earnings on December 31, 2020?
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