U Co. has a P2, 000,000 credit balance of accumulated profits. The following transactions are taken from

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Question:

U Co. has a P2, 000,000 credit balance of accumulated profits.

The following transactions are taken from U Co. during the year:

Net loss, P400,000
Purchase or treasury shares at cost P200,000
Overstatement of depreciation in previous year, P30,000
Declaration of dividends, P500,000
Reversal of appropriation reserve for plant expansion, P600,000
Understatement of inventory in the previous year, P90,000

Required:: Journalized the above transactions.

Compute the adjusted accumulated profits at the end of the period

PROBLEM 2

Consider each item as an independent transaction:

The income summary account has a credit balance of 1,000,000.
The income summary account has a debit balance of P600, 000.
Total revenues amount to P20, 000,000 and total operating expenses amount to P18, 000,000.
Total sales, P100, 000, 00; total operating expenses, P11, 000,000 and dividend income, P1, 000,000,000.
Total accumulated profits, P5, 000,000 of which 20% was appropriate for plant expansion.
Cash dividend paid, P500, 000.
Overstatement of depreciation in previous years amounted to P100, 000.
Overstatement of beginning inventory, P50, 000.

Journalize the following accumulated profit's transactions of Z Corporations.