Party Company reported total assets of P1,050,000 and total liabilities of P680,000 in its December 31,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Party Company reported total assets of P1,050,000 and total liabilities of P680,000 in its December 31, 2020 statement of financial position. The following transactions happened during 2021: On August 1, Party Company issued an additional 5,000 ordinary shares at P25 per share. The company paid dividends totaling P80,000. Net income during the year was P110,000. * Reacquired treasury shares of 2,000 at P30; subsequently, reissued 1,000 for P39. → No other changes occurred in the shareholders' equity for the year. What is the total equity that must be reported in the Statement of Changes in Equity for the year ended December 31, 2021? Party Company reported total assets of P1,050,000 and total liabilities of P680,000 in its December 31, 2020 statement of financial position. The following transactions happened during 2021: On August 1, Party Company issued an additional 5,000 ordinary shares at P25 per share. The company paid dividends totaling P80,000. Net income during the year was P110,000. * Reacquired treasury shares of 2,000 at P30; subsequently, reissued 1,000 for P39. → No other changes occurred in the shareholders' equity for the year. What is the total equity that must be reported in the Statement of Changes in Equity for the year ended December 31, 2021?
Expert Answer:
Answer rating: 100% (QA)
To calculate the total equity that must be reported in the Statement of Changes in Equity for the ye... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
The Bigfork Company is a retail company that began operations on January 1,2018. The Bigfork Company is authorized to issue 1,000,000 shares of P10 par value ordinary share and 500,000 shares of 3%,...
-
1. Invest Company owns 30 percent of Ali Corporation. During the year, Ali had net earnings of $200,000 and paid dividends of $18,000. Invest mistakenly recorded these transactions using the cost...
-
1. Pam Company owns 25 percent of Sun Corporation. During the year, Sun had net earnings of $450,000 and paid dividends of $28,000. Pam mistakenly recorded these transactions using the cost method...
-
The LEGO company is a perfect example of planning. They carefully crafted the name from two phrases into one word. Besides the name, they also planned how they would make the bricks fit into one...
-
A 950-kg cylindrical can buoy float vertically in salt water. The diameter of the buoy is 0.900 m. (a) Calculate the additional distance the buoy will sink when a 70.O-kg man stands on top. (Use the...
-
In estimating the capacitance of a given configuration of conductors, comparison with known capacitances is often helpful. Consider two configurations of n conductors in which the (n 1) conductors...
-
Arlene Lavoie practiced law with a partnership for 10 years. Recently she opened her own law office, which she operates as a professional corporation. The name of the new entity is Arlene Lavoie,...
-
John Smith has developed the following forecasting model: Y = 36 + 4.3X1 Where Y = Demand for K10 air conditioners X1 = the outside temperature (F) (a) Forecast the demand for K10 when the...
-
Define Procedural Fairness? When would procedural fairness arise? When would mediation be suitable? What is Proof of service? How is it used? What are the forms? How would a statute or regulation...
-
1. As its customer base grows and becomes more diversified, how will the information requirements of the IDI supply chain change? 2. Given its anticipated volume growth and inventory variety...
-
Describe how Aldi likely used research to gain the new success they have seen in the grocery category in the US. Include in your discussion the topics from Module 3, such as drivers analysis,...
-
What is the difference between a content-neutral restriction and a content-based restriction? How do levels of judicial review differ for each?
-
How is the Fourteenth Amendment used to make the First Amendment applicable to the states and why is it necessary?
-
How do criminal and civil law differ?
-
How do hierarchy and jurisdiction determine whether a precedent is binding or persuasive?
-
Does the First Amendment protect journalists privilege?
-
Ms. Chiu moved from Toronto to Vancouver to start a new job. She earned $40,000 from her Toronto job and $50,000 from her Vancouver job in the year of the move. Ms. Chiu incurred the following costs...
-
What are the two methods used to translate financial statements and how does the functional currency play a role in determining which method is used?
-
Exhibit 5.21 presents selected financial data for Best Buy Co., Inc., and Circuit City Stores, Inc., for fiscal 2008 and 2007. Best Buy and Circuit City operate as specialty retailers offering a wide...
-
Disclosures related to income taxes for The Coca-Cola Company (Coke) for 20062008 appear in Exhibit 8.11. Required a. Why are Cokes average tax rates so low? b. Is it likely that Coke has recognized...
-
Suppose you are applying the residual income valuation model to value a firm with extremely conservative accounting. Suppose, for example, the firm is following U.S. GAAP or IFRS, but the firm does...
-
Does statelessness exist in wealthy countries such as the United States? How does the status of the "Dreamers" (people who entered the United States illegally as young children) compare with that of...
-
What are the main characteristics of the various systems of social differentiation within egalitarian and rank societies?
-
How does political organization relate to social differentiation?
Study smarter with the SolutionInn App