Question: Show complete solution. The answer is already indicated. Thank you so much, tutors. The shareholders' equity of Canada Company are as follows: Issued no. of
Show complete solution. The answer is already indicated. Thank you so much, tutors.
The shareholders' equity of Canada Company are as follows:
Issued no. of shares 10,000
Par value 100
Share capital P1,000,000
Share premium 2,800,000
Retained earnings 3,675,000
Total P7,475,000
Last March of the same year, the entity acquired 2,000 of its shares for P135 per share.
The reported net income for the year is P1,925,000.
The entity also declared the following dividends:
- Cash dividends of P47.50 per share.
- Dividends of 2,160 shares of Canada Company.
- Dividends of 1,500 shares of Colombia Company.
The market value of Canada shares
December 15 112.50
December 31 118
January 15 125
The Market value of Colombia shares
December 15 120
December 31 125
January 15 128
Dividends are declared every December 15 and paid every January 15 for shareholders as of December 31.
How much are the retained earnings - unappropriated on year-end?
The correct answer is 4,546,500
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
Study Help