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Tania Company's stockholders' equity section of its December 31, 2019 balance sheet was as follows: • Common stock authorized 100,000 shares; issued 60,000 shares, P100 par, P6,000,000 • Additional paid-in capital, P3,000,000 • Retained earnings, P4,000,000 • Treasury stock, 10,000 shares at cost, P900,000 During 2020 Tania reissued 3,000 shares of the treasury stock at P120 per share. The net income for the year is P829,040 and declared 5% cash dividends. Tania voluntarily restricts the third P250,000 installment for its future long-term asset acquisition. Determine the total balance of retained earnings (unrestricted) by the end of the year 2020.

Tania Company's stockholders' equity section of its December 31, 2019 balance sheet was as follows: • Common stock authorized 100,000 shares; issued 60,000 shares, P100 par, P6,000,000 • Additional paid-in capital, P3,000,000 • Retained earnings, P4,000,000 • Treasury stock, 10,000 shares at cost, P900,000 During 2020 Tania reissued 3,000 shares of the treasury stock at P120 per share. The net income for the year is P829,040 and declared 5% cash dividends. Tania voluntarily restricts the third P250,000 installment for its future long-term asset acquisition. Determine the total balance of retained earnings (unrestricted) by the end of the year 2020.

Intermediate Accounting: Reporting And Analysis
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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...
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29. Tania Company's stockholders' equity section of its December 31, 2019 balance sheet was as follows:

• Common stock authorized 100,000 shares; issued 60,000 shares, P100 par, P6,000,000

• Additional paid-in capital, P3,000,000

• Retained earnings, P4,000,000

• Treasury stock, 10,000 shares at cost, P900,000

During 2020 Tania reissued 3,000 shares of the treasury stock at P120 per share. The net income for the year is P829,040 and declared 5% cash dividends. Tania voluntarily restricts the third P250,000 installment for its future long-term asset acquisition. Determine the total balance of retained earnings (unrestricted) by the end of the year 2020.

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