Reference no: EM132746262

The accumulated profits and losses of Gabby Company shows he following postings:

Debit

Stock Dividends Php 500,000

Uninsured fire loss 175,000

Prior year's errors 224,000

Reserved for bond redemption 300,000

Credit

Beginning balance Php 1,120,000

Net income for the year 760,000

Excess of par value 250,000

Gain on sale of treasury shares 150,000

Ending Balance Php 1,081,000

Required:

Problem 1: What is the balance in Accumulated Profits account to be reported in the company's year 0 end financial statements.