What amount should be reported as retained earnings on dec

Assignment Help Financial Accounting
Reference no: EM132794629

Nile Company reported the following amounts in the shareholders' equity on January 1, 2020:

Preference share capital, P75 par value, 20,000 shares 1,500,000;

Ordinary share capital, P25 par value, 100,000 shares 2,500,000;

Share Premium 3,000,000; and

Retained earnings 1,250,000.

Question 1: On January 1, 2020, the entity sold 20,000 additional shares for P45 per share. Late in 2020, it was learned that because of mathematical error, an overstatement of depreciation expense by P250,000 had occurred in 2019. The entity reported net income of P2,000,000 for 2020. The entity declared cash dividend of P500,000 on preference shares and P1,000,000 on Ordinary shares during 2020. The income tax rate is 30%. What amount should be reported as retained earnings on December 31, 2020?

Option 1: 2,225,000
Option 2: 2,925,000
Option 3: 3,000,000
Option 4: 2,575,000

Reference no: EM132794629

Questions Cloud

Find what amount be reported as retained earnings on dec : Charm Company reported net income of P1,500,000 for 2017, P2,500,000 for 2018, What amount should be reported as retained earnings on December 31, 2020?
Telemedicine during the covid-19 pandemic : What are the challenges and opportunities of using telemedicine during the COVID-19 pandemic?
Calculate the amount of dividends to be paid to each group : Blossom, Inc. has $500,000, $0.50, no par value preferred shares (50,000 shares). Calculate the amount of dividends to be paid to each group of shareholders
What aggregate amount should be debited to retained earnings : Sushi Company declared and distributed 10% stock dividend, What aggregate amount should be debited to retained earnings for the stock dividends?
What amount should be reported as retained earnings on dec : On January 1, 2020, entity sold 20,000 additional shares, The income tax rate is 30%. What amount should be reported as retained earnings on December 31, 2020?
What is the distribution of dividends in year three : Booyah Party Supplies, Inc. outstanding stock consists of 80,000 shares of cumulative 7.5% Preferred Stock, What is the distribution of dividends in year three
What is meant by binding constraint : What is meant by binding constraint? What information does it provide to a manager about a production process?
Formulate the linear programming model for problem : A company assembles Tractor Model X and Tractor Model Y in Assembly plant at Windsor (Ontario), and Winnipeg (Manitoba) respectively. Model produced in Winnipe
What is the inspection cost per unit : The standard amount of varnish per table is nine quarts. The cost of inspection for September equaled $40,000. What is the inspection cost per unit

Reviews

Write a Review

Financial Accounting Questions & Answers

  Translation-local currency is the functional currency

On January 1, 2008, a U.S. company purchased 100% of the outstanding stock of Ventana Grains, a company located in Latz City, New Zealand. Translate the financial statements into dollars assuming that the local currency of the foreign subsidiary was ..

  Calculate the price of the bonds

The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5%. Calculate the price of the bonds

  How can a future crisis be prevented

Discuss the 2007-2008 financial crisis and what impact it had on the financial markets. Who was impacted? What caused the crisis

  Prepare a statement of cash flows for sample company

Prepare a statement of cash flows for Sample Company for the 2004 fiscal year and interpret the statement - The company's earnings per share (EPS) in 2003

  Prepare entries for these transactions under the method

Tremor Co. had the following transactions in the last two months of its fiscal year ended May 31.

  What amount is the original basis of the rental property

What amount is the original basis of the rental property? Jacob purchased a rental property in 2019. The original price of the house was $158,000.

  Determine at what amount the land should be recorded

On January 1, 2014, Robin Wright Inc. purchased land that had an assessed value of $341,000 at the time of purchase. A $674,000, zero-interest-bearing note due January 1, 2017, was given in exchange. Determine at what amount the land should be record..

  Budgeted income statementnbsp static and flexible

budgeted income statementnbsp static and flexible budgeted income statement variable costing variance

  How to comparative analysis on the two asx listed companies

How to comparative analysis on the two ASX listed companies' disclosure on business combination. prefarbaly A2B Australia Limited vs Beston GLobal food lmited

  Provide a target price and also analyst recommendation

AC221 Financial Accounting Spring 2016 - Financial Statement Analysis Project. You will need to provide a target price and also analyst recommendation (Strong Buy, Buy, Hold, Sell, Strong Sell). You can rely on what stock analysts think already and..

  How many units would company have to sell

A total of 80,000 units were produced and sold last month. How many units would company have to sell to achieve a desired profit of $1,200,000?

  Compute the amount of the aftertax income

Compute the amount of the aftertax income from the additional preferred stock if it is purchased.Compute the aftertax borrowing cost to purchase

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd