Riftwalker Company was incorporated on January 1, 2015 with proceeds from issuance of P7,500,000 in share capital and borrowed funds of P1,100,000. During the first year, revenue from sales and consulting amounted to P8,200,000, and operating costs and expenses totaled P6,400,000. On December 15, 2015 the entity declared a P300,000 dividends, payable to sharehalders on January 15, 2016. The liabilities increased to P2,000,000 by December 31, 2015. On December 31, 2015, what amount should be reported as total assets? A. 12,100,000 B. 11,300,000 C. 11,000,000 D. 10,100,000

Riftwalker Company was incorporated on January 1, 2015 with proceeds from issuance of P7,500,000 in share capital and borrowed funds of P1,100,000. During the first year, revenue from sales and consulting amounted to P8,200,000, and operating costs and expenses totaled P6,400,000. On December 15, 2015 the entity declared a P300,000 dividends, payable to sharehalders on January 15, 2016. The liabilities increased to P2,000,000 by December 31, 2015. On December 31, 2015, what amount should be reported as total assets? A. 12,100,000 B. 11,300,000 C. 11,000,000 D. 10,100,000

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 28E

See similar textbooks

Similar questions

Indigo Inc., was organized on January 1, 2017, at which date it issued 200,000 shares of P 10 par Ordinary share capital at P 15 per share. For the period 2017 to 2019, the corporation reported profit of P900,000 and paid cash dividends of P 460,000. On Jan. 1, 2019, the corporation purchased 12,000 of its own share capital at P 12 per share. On Sept. 20, 2019, the company sold 8,000 Treasury shares at P 18 per share. On Oct. 2, 2019, the corporation received 2,000 shares as donation from a major shareholder and were subsequently sold at P 15 per share on Nov. 15, 2019. Compute Total Shareholders’ Equity on December 31, 2019
Riftwalker Company was incorporated on January 1, 2015 with proceeds from issuance of P7.500,000 in share capital and borrowed funds of P1.100,000. During the first year, revenue from sales and consulting amounted to P8,200,000, and operating costs and expenses totaled P6.400,000. On December 15, 2015 the entity declared a P300,000 dividends, payable to sharehalders on January 15, 2016. The liabilities increased to P2;000,000 by December 31, 2015. On December 31, 2015, what amount should be reported as total assets? A. 12,100,000 B. 11,300,000 C. 11,000,000 D. 10,100,000
Riftwalker Company was incorporated on January 1, 2015 with proceeds from issuance of P7,500,000 in share capital and borrowed funds of P1,100,000. During the first year, revenue from sales and consulting amounted to P8,200,000, and operating costs and expenses totaled P6,400,000. On December 15, 2015 the entity declared a P300,000 dividends, payable to shareholders on January 15, 2016. The liabilities increased to P2,000,000 by December 31, 2015. On December 31, 2015, what amount should be reported as total assets? A. 12,100,000 B. 11,300,000 C. 11,000,000 D. 10,100,000
An entity was organized on January 1, 2017. On that date, the entity issued 200,000 shares with P10 par value at P15 per share. During the period January 1, 2017 through December 31, 2018, the entity reported net income of P2,000,000 and paid cash dividends of P500,000. On January 5, 2018, the entity purchased 10,000 shares at P20 per share to be held as treasury. On December 31, 2018, 5,000 treasury shares were sold at P30 per share and the remaining treasury shares were retired. What is the total shareholders’ equity on December 31, 2018?
BARK Corporation acquired 10,000 Company shares on February 5, 2016 at P50 which include P10 per share broker's fees and commissions, A P50,000 cash dividends were received from MEOW Company on March 20, 2016. These dividends were declared on January 5 payable to shareholders as of February 10. MEOW Company shares were split 2 for 1 on November 1. The shares were selling at P32 per share on December 31, 2016. The investments were designated as FVPL How much is initial carrying value of investment on the date of acquisition?
An entity began operations January 1, 2015 and reported the following net income or loss for five years of operations: 2015 1,500,000 loss 2016 1,300,000 loss 2017 1,200,000 loss 2018 4,500,000 income 2019 9,000,000 income On December 31, 2019, the capital accounts were: Preference share capital, P100 par, 12% participating and cumulative, 100,000 shares 10,000,000 Preference share capital P100 par, 10% nonparticipating, Noncumulative, 50,000 shares 5,000,000 Ordinary share capital, P10 par, 1,000,000 shares 10,000,000 The entity has never paid cash or share dividend. The capital accounts have not changed since the entity began operations. If the maximum amount available for cash dividends is declared on December 31, 2019, what amount of dividend is payable to 12% Preference Shareholders? 10% Preference Shareholders?
Mitch Company was organized on January 1, 2021 and issued 100,000 P20 par value shares at P23 per share. During 2021, the entity reported net income of P720,000 and paid cash dividends of P220,000. On January 10, 2022, the entity purchased 15,000 treasury shares at P15 per share. On December 31, 2022, 5,000 treasury shares were sold at P10 per share. The Company realized profit of 1.5x of last year's. No dividends were declared. What amount should be reported as shareholders' equity on December 31, 2022.
Debacle Company was organized on January 1, 2012. On that date, it issued 200,000 shares with P10 par value at P15 per share. During the period January 1, 2012 through December 31, 2013, the entity reported net income of P2,000,000 and paid cash dividends of P500,000. On January 5, 2013, the entity purchased 10,000 shares at P20 per share to be held as treasury. On December 31, 2013, 5,000 treasury shares were sold at P30 per share and the remaining treasury shares were retired. What is the total shareholders' equity on December 31, 2013? a. 4,450,000 b. 4,350,000 c. 4,400,000 d. 4,950,000
2. Calculate the carrying value per share of Heritage's investment as reflected in the investment account on January 4, 2025. (Round your answer to 2 decimal places.) S Carrying value per share 3.Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its investment in Port. Equity 8.42 decreases by S 144.800
On July 1, 2015, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share. On December 15, 2015, Eagle paid P400,000 in dividends to its share ordinary shareholders. Eagle's net income for the year ended December 31, 2015 was P1,200,000, earned evenly throughout the year. In its 2015 income statement, what amount of income from the investment should Denver report?a. 360,000b. 180,000c. 120,000d. 60,000
meric Response Sample Corp. was organized on January 1, 2021, with authorized capital of 100,000 shares of P55 par value Ordinary Share Capital. Eighty-five thousand (85,000) shares were issued for cash at P77 per share. During the year, the company earned a profit of P1,250,000 and distributed dividends of P650,000. Instructions: Based on the given information, compute for each of the items listed below. 1. Balance of Retained Earnings account as of December 31, 2021. 2. Balance of ordinary share capital account as of December 31, 2021. 3. Total contributed capital as of December 31, 2021. 4. Total additional paid-in capital as of December 31, 2021. 5. Total shareholders' equity as of December 31, 2021.
On January 1, 2015, Visaries Corporation was established. On that day, it issued 200,000 shares at a price of USD15 per share (400,000 shares were authorized with a par value of USD10). Visaries reported net income of USD750,000 and paid cash dividends of USD380,000 from January 1, 2015 to December 31, 2015. Visaries purchased 12,000 treasury shares at USD12 per share on February 9, 2016. On December 31, 2016, 8,000 treasury shares were sold at USD8 per share. Calculate and determine the total shareholders' equity as of December 31, 2016. Please the solution.