Kenneth Company was organized on January 1, 2015 at which date it issued 100,000 common stock of P10 par value at P15 per share. During the period January 1, 2015 through December 31, 2015, Kenneth reported net income of P450,000 and paid cash dividend of P230,000. On January 10, 2015, Kenneth purchased 6,000 treasury shares at P12 per share. On December 31, 2015, Kenneth sold 4,000 shares at P8 per share and retired the remaining treasury shares. Kenneth uses the cost method of accounting for treasury shares. What is the total stockholders’ equity at December 31, 2015? A. 1,720,000 B. 1,704,000 C. 1,688,000 D. 1,680,000
Kenneth Company was organized on January 1, 2015 at which date it issued 100,000 common stock of P10 par value at P15 per share. During the period January 1, 2015 through December 31, 2015, Kenneth reported net income of P450,000 and paid cash dividend of P230,000. On January 10, 2015, Kenneth purchased 6,000 treasury shares at P12 per share. On December 31, 2015, Kenneth sold 4,000 shares at P8 per share and retired the remaining treasury shares. Kenneth uses the cost method of accounting for treasury shares. What is the total stockholders’ equity at December 31, 2015? A. 1,720,000 B. 1,704,000 C. 1,688,000 D. 1,680,000
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
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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Kenneth Company was organized on January 1, 2015 at which date it issued 100,000 common stock of P10 par value at P15 per share. During the period January 1, 2015 through December 31, 2015, Kenneth reported net income of P450,000 and paid cash dividend of P230,000. On January 10, 2015, Kenneth purchased 6,000 treasury shares at P12 per share. On December 31, 2015, Kenneth sold 4,000 shares at P8 per share and retired the remaining treasury shares. Kenneth uses the cost method of accounting for treasury shares. What is the total stockholders’ equity at December 31, 2015?
A. 1,720,000
B. 1,704,000
C. 1,688,000
D. 1,680,000
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