Question
Melbourne Company reported the following shareholder's equity at the beginning of current year: Share Capital, 250,000 shares authorized, P20 par 100,000 shares issued and outstanding
Melbourne Company reported the following shareholder's equity at the beginning of current year:
Share Capital, 250,000 shares authorized, P20 par
100,000 shares issued and outstanding 2,000,000
Share Premium 3,000,000
Retained Earnings 7,000,000
The board of directors declared a 12% share dividend on April 1 when the market value of the share was P50. The share dividend was issued on July 1 when the market value of the share was P60. The entity sustained net loss of P1,500,000 for the current year.
What amount should be reported as retained earnings at year-end?
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Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
7th Edition
1-119-57105-6, 978-1119571056
