On December 31, 2022, Funny retired 20,000 shares of P30 par value ordinary shares held in treasury at an average cost of P80 per share. Before recording the retirement of the treasury shares, Funny had the following balances in its shareholders’ equity: Ordinary share capital (200,000 shares originally issued at P50) 6,000,000 Share premium 4,200,000 Retained earnings 5,000,000 Treasury shares, at cost 1,600,000 The total share premium also includes a gain from previous treasury share reissuance of 200,000. In its December 31, 2022, statement of financial position, what should Funny report as retained earnings?

On December 31, 2022, Funny retired 20,000 shares of P30 par value ordinary shares held in treasury at an average cost of P80 per share. Before recording the retirement of the treasury shares, Funny had the following balances in its shareholders’ equity: Ordinary share capital (200,000 shares originally issued at P50) 6,000,000 Share premium 4,200,000 Retained earnings 5,000,000 Treasury shares, at cost 1,600,000 The total share premium also includes a gain from previous treasury share reissuance of 200,000. In its December 31, 2022, statement of financial position, what should Funny report as retained earnings?

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 9P

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Hazel Company had 64,000 shares of P10 par value treasury shares. These shares were reacquired at a cost of P1,280,000. During the current year 2020, the company reissued 45,000 shares at P25 per share. Hazel Company used the cost method to account for treasury shares. At December 31, 2020, what amount should Hazel Company show in notes to financial statements as a restriction of retained earnings?
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On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $55.4 million. KT's net income for the year ended December 31, 2024, was $81.8 million. The fair value of the shares held by Chow was $38.6 million at December 31, 2024. KT did not declare or pay a dividend during 2024. Required: 1. Prepare all appropriate journal entries related to the investment during 2024. 2. Assume that Chow sold the stock on January 20, 2025, for $31.8 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Prepare all appropriate journal entries related to the investment during 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Required 2 Journal entry worksheet
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At the beginning of 2022, Rose, Inc. purchased 8000 ordinary shares of Mark, Inc. for $800,000. The shares were designated as FVOCI investment. On July 31, 2022, Rose, Inc. sold all of its Mark, Inc.’s shares for $1,200,000. How much will be closed to Retained Earnings at the end of 2022 as a result of this sale?
On March 31, 2024, Chow Brothers, Incorporated, bought 7% of KT Manufacturing’s capital stock for $51.2 million. KT’s net income for the year ended December 31, 2024, was $80.4 million. The fair value of the shares held by Chow was $35.8 million at December 31, 2024. KT did not declare or pay a dividend during 2024. Required: Prepare all appropriate journal entries related to the investment during 2024. Assume that Chow sold the stock on January 20, 2025, for $30.4 million. Prepare the journal entries to record the sale.

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Ordinary share capital (200,000 shares originally issued at P50)	6,000,000
Share premium	4,200,000
Retained earnings	5,000,000
Treasury shares, at cost	1,600,000