Reference no: EM132744546

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 end financial statements.