Question
At year-end, Ayr Company showed shareholders' equity of P5,000,000. The share capital of P3,000,000 remained unchanged during the year. Transactions during the year which affected
At year-end, Ayr Company showed shareholders' equity of P5,000,000. The share capital of P3,000,000 remained unchanged during the year.
Transactions during the year which affected the equity were:
- An adjustment of retained earnings for overdepreciation in prior year - P100,000
- Gain on sale of treasury shares - P300,000
- Dividend declared, of which P400,000 was paid - P600,000
- Net income for current year - P800,000
What is the balance of retained earnings on January 1?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing A Practical Approach
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren
1st Extended Canadian Edition
1118878418, 9781118878415
