Reference no: EM132760195
On January 1, 2020, Lizabeth Company showed the following shareholders' equity:
Share capital 1,500,000
Share premium 3,000,000
Retained earnings 5,000,000
The entity had 400,000 authorized shares of P5 par value of which 300,000 shares were issued and outstanding. On July 1, 2020, the entity declared a property dividend of inventory payable on March 1, 2021 The inventory had a P1,200,000 carrying amount and a fair value less cost to distribute of P1,500,000 on July 1, 2020, P1,800,000 on December 31, 2020 and P2,000,000 on March 1, 2021. The net income for 2020 was P3,000,000.
Problem 1: What amount should be reported as retained earnings on December 31, 2020?
a. 6,500,000
b. 6,200,000
c. 6,000,000
d. 8,000,000
Problem 2: What amount should be recognized as gain on distribution of property dividend in 2021?
a. 0
b. 300,000
c. 600,000
d. 800,000
|
Determine the amount of gain or loss that will be recorded
: For each situation, determine the amount of gain or loss that will be recorded on the company's statement of comprehensive income
|
|
Journalize the given data until maturity date
: On January 1, 2019, Dela Cruz Company purchased land for 500,000 by issuing a 5-year non-interest bearing note payable in five equal annual payments every.
|
|
Find what amount should be recognized as gain on reversal
: As a result of the share appreciation rights, what amount should be recognized as gain on reversal of share appreciation rights in 2020?
|
|
List the distinctive features of trompenaar model
: List the distinctive features of Trompenaar's model of cultural difference.
|
|
What amount should be recognized as gain on distribution
: What amount should be recognized as gain on distribution of property dividend in 2021? The entity had 400,000 authorized shares of P5 par value of which 300,000
|
|
What are the different methods a leader
: What are the different methods a leader can utilize adaptive work to adjust his/her thinking.
|
|
Describe a potential ethical issue
: Briefly identify and describe a potential ethical issue that may arise from Daniel's and Kelly's minimal knowledge or experience with investing
|
|
How much is the commission
: The unit cost per water heater is P10,000. Schindler pays P3,000 in transporting the water heaters to Paralax. How much is the commission
|
|
Find what is the gain on sale of bonds
: Cone Company acquired long term 12% bond,On December 31, 2020, Cone sold all bonds for P2,300,000 excluding accrued interest. What is the gain on sale of bonds?
|