December 31, 2013, Melissa Company showed shareholders' canny of P5,000,000. The share capital of P3,000,000 remained unchanged during the year. Transactions during the year which affected the equity were: An adjustment of retained earnings for 2012 over-depreciation - 100,000; Gain on sale of treasury shares - 300,000; Dividend declared, of which P400,000 was paid - 600,000; Net income for 2013 - 800,000. What is the balance of retained earnings on January 1, 2013?
December 31, 2013, Melissa Company showed shareholders' canny of P5,000,000. The share capital of P3,000,000 remained unchanged during the year. Transactions during the year which affected the equity were: An adjustment of retained earnings for 2012 over-depreciation - 100,000; Gain on sale of treasury shares - 300,000; Dividend declared, of which P400,000 was paid - 600,000; Net income for 2013 - 800,000. What is the balance of retained earnings on January 1, 2013?
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 18E
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December 31, 2013, Melissa Company showed shareholders' canny of P5,000,000. The share capital of P3,000,000 remained unchanged during the year. Transactions during the year which affected the equity were: An adjustment of retained earnings for 2012 over-
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