Scribd
Upload
7 views

Problem 4

The document provides financial information for Reliable Company for the year ended December 31, 2019 including retained earnings, net income, appropriations for treasury shares and contingencies, cash dividends paid, and a change in accounting method. A statement of retained earnings for 2019 is required.

Uploaded by

Katrina Dela Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
7 views

Problem 4

The document provides financial information for Reliable Company for the year ended December 31, 2019 including retained earnings, net income, appropriations for treasury shares and contingencies, cash dividends paid, and a change in accounting method. A statement of retained earnings for 2019 is required.

Uploaded by

Katrina Dela Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Reliable Company provided the

following information for the


year ended December 31,
2019:
Retained earnings –
unapppropriated, January 1
200,000
Overdepreciation of 2018 due to
prior period error 100,000
Net income for current year
1,300,000
Retained earnings appropriated
for treasury shares,
Original balance is P500,000
and reduced by
P200,000 by reason of reissue
of the treasury shares 300,000
Retained earnings appropriated
for contingencies,
Beginning balance P700,000
and increased by
Current appropriation of
P100,000 800,000
Cash dividends paid to
shareholders 500,000
Change from FIFO to weighted
average – credit 150,000
Required:
Prepare a statement of retained
earnings for 2019
Reliable Company provided the following information for the year ended December 31,
2019:

Retained earnings – unapppropriated, January 1 200,000


Overdepreciation of 2018 due to prior period error 100,000
Net income for current year 1,300,000
Retained earnings appropriated for treasury shares,
Original balance is P500,000 and reduced by
P200,000 by reason of reissue of the treasury shares 300,000
Retained earnings appropriated for contingencies,
Beginning balance P700,000 and increased by
Current appropriation of P100,000 800,000
Cash dividends paid to shareholders 500,000
Change from FIFO to weighted average – credit 150,000
Required:
Prepare a statement of retained earnings for 2019

Reliable Company
Statement of Retained Earnings
December 31, 2019
Retained earnings – January 1 200,000

Prior period error – overdepreciation in 2018 100,000

Change in accounting policy from FIFO to weighted

Average method – credit adjustment 150,000

Corrected beginning balance 450,000

Net income for 2019 1,300,000

Decrease in appropriation for treasury share 200,000

Total 1,950,000

Cash dividends paid to shareholders ( 500,000)

Current appropriation for contingencies ( 100,000)

Retained earnings – December 31 1,350,00

You might also like