Question: Hello tutors, I included the correct answer for the 2 questions below. Please show complete solution. Thank you so much! Cooper Corporation's Shareholder's equity for
Hello tutors, I included the correct answer for the 2 questions below. Please show complete solution. Thank you so much!
Cooper Corporation's Shareholder's equity for January 1, 2020:
Issued shares 50,000
Par value 20
Share capital 1,000,000
Share premium 500,000
Retained earnings 3,750,200
Total P5,250,200
During the year, the following transactions occur:
Acquired entity's shares of 2,500 shares at 40 per share.
Reissued shares of 1,500 for an amount of 45 per share.
Retire 1,000 treasury shares.
Net income is P780,500.
Declared P3.75 cash dividends per outstanding share. The cash dividends will be paid in the next year.
How much are the retained earnings at year-end?
The correct answer is 4,344,450
Lupita Corporation's Shareholder's equity for January 1, 2020:
Issued shares 20,000
Par value 50
Share capital 1,000,000
Share premium 750,000
Retained earnings 1,975,000
Total P3,725,500
During the year, the following transactions occur:
- Acquired 5,000 of its shares for 68.5 per share.
- Reissued shares of 3,000 for an amount of 75 per share.
- Reissued shares of 2,000 for an amount of 58 per share.
- Net income is P897,250.
- Cash dividends declared is P500,000.
Kehia Corporation's Shareholder's equity for January 1, 2020:
Issued shares 20,000
Par value 50
Share capital 1,000,000
Share premium 750,000
Retained earnings 1,975,000
Total P3,725,500
During the year, the following transactions occur:
- Acquired 5,000 of its shares for 68.5 per share.
- Reissued shares of 3,000 for an amount of 75 per share.
- Reissued shares of 2,000 for an amount of 58 per share.
- Net income is P897,250.
- Cash dividends declared is P500,000.
How much are the retained earnings at year-end?
The correct answer is P2,371,250
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts