On December 31, 2014, Zeus Company showed shareholders' equity of P4,000,000. During the current year, the shareholders' equity was affected by: * An adjustment to retained earnings for overstatement of inventory on December 31, 2013 in the amount of P200,000. * Declared dividend of P400,000 of which P300,000 was paid in 2014. * The share capital was split five for one. * Net income for the year amounted to P700,000. * The share capital of P3,000,000 remained unchanged during the year. What is the retained earnings balance on January 1, 2014?
On December 31, 2014, Zeus Company showed shareholders' equity of P4,000,000. During the current year, the shareholders' equity was affected by: * An adjustment to retained earnings for overstatement of inventory on December 31, 2013 in the amount of P200,000. * Declared dividend of P400,000 of which P300,000 was paid in 2014. * The share capital was split five for one. * Net income for the year amounted to P700,000. * The share capital of P3,000,000 remained unchanged during the year. What is the retained earnings balance on January 1, 2014?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.14E
Related questions
Question
100%
On December 31, 2014, Zeus Company showed shareholders' equity of P4,000,000. During the current year, the shareholders' equity was affected by: * An adjustment to retained earnings for overstatement of inventory on December 31, 2013 in the amount of P200,000. * Declared dividend of P400,000 of which P300,000 was paid in 2014. * The share capital was split five for one. * Net income for the year amounted to P700,000. * The share capital of P3,000,000 remained unchanged during the year. What is the retained earnings balance on January 1, 2014?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT