Kakhie Company issued share capital of 20,000 shares with USD5 par at USD10 per share. On January 1, 2012, the retained earnings were USD300,000. In March 2012, Kakhie Company reacquired 5,000 shares at USD20 per share. In July 2012, Bruno Company sold 1,000 shares of these shares to its corporate officers for USD25 per share. Bruno Company uses the cost method to record treasury shares. Net income for 2012 was USD60,000. On December 31, 2012, what amount should Kakhie Company report as unappropriated retained earnings?
Kakhie Company issued share capital of 20,000 shares with USD5 par at USD10 per share. On January 1, 2012, the retained earnings were USD300,000. In March 2012, Kakhie Company reacquired 5,000 shares at USD20 per share. In July 2012, Bruno Company sold 1,000 shares of these shares to its corporate officers for USD25 per share. Bruno Company uses the cost method to record treasury shares. Net income for 2012 was USD60,000. On December 31, 2012, what amount should Kakhie Company report as unappropriated retained earnings?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter13: Earnings Per Share (eps)
Section: Chapter Questions
Problem 3R: During 2012, Ponce Towers issued 30,000 additional shares of common stock on June 1 and 24,000 on...
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Kakhie Company issued share capital of 20,000 shares with USD5 par at USD10 per share. On January 1, 2012, the
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