What is the total balance of RETAINED EARNINGS account as of December 31, 2020 SKIPPY Company reported the following amounts in the equity section of its December 31, 2019Statement of Financial Position:Preference shares 8%, P100 par (10,000 shares authorized, 2,000shares issued)P 200,000Ordinary shares - P5 par (100,000 shares authorized, 20,000shares issued)100,000Share premium125,000Retained earnings450,000Total shareholders' equity875,000During 2020, SKIPPY took part in the following transactions concerning equity:●Paid the annual 2019 #8 per share dividend on preference shares and a #2 per share dividend onordinary shares. These dividends had been declared on December 31,2019.• Purchased 2,700 shares of its own outstanding ordinary shares for $40 per share.Reissued 700 treasury shares for land valued at $30,000.Issued 500 preference shares at $105 per share·Declared a 10% share dividend on the outstanding ordinary shares when the shares are selling for $45per share•Issued the share dividend•Declared the annual 2020 8 per share dividend on preference shares and the #2 per share dividendon ordinary shares. These dividends are payable in 2021.SKIPPY reported net income of $330,000 for the year

The retained earnings are the earnings of the business that are retained for the future purpose of…

Answered: ccount as of December 31, 2

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Accounting

ccount as of December 31, 2

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
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