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    Kiara Company Provided The Following Data

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    dagohoy kenneth
    Kiara Company provided financial data for 2015 and 2016. In 2016, it declared cash dividends of $750,000 and share dividends of $500,000. With net income of $1,500,000, its retained earnings balance at the end of 2016 was $5,250,000. Payment of cash dividends decreases retained earnings, while declaration of share dividends or net income does not.

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    Kiara Company Provided The Following Data

    Uploaded by

    dagohoy kenneth
    626 views1 page
    Kiara Company provided financial data for 2015 and 2016. In 2016, it declared cash dividends of $750,000 and share dividends of $500,000. With net income of $1,500,000, its retained earnings balance at the end of 2016 was $5,250,000. Payment of cash dividends decreases retained earnings, while declaration of share dividends or net income does not.

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    Kiara Company provided the following data

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    Kiara Company provided financial data for 2015 and 2016. In 2016, it declared cash dividends of $750,000 and share dividends of $500,000. With net income of $1,500,000, its retained earnings balance at the end of 2016 was $5,250,000. Payment of cash dividends decreases retained earnings, while declaration of share dividends or net income does not.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    626 views1 page

    Kiara Company Provided The Following Data

    Uploaded by

    dagohoy kenneth
    Kiara Company provided financial data for 2015 and 2016. In 2016, it declared cash dividends of $750,000 and share dividends of $500,000. With net income of $1,500,000, its retained earnings balance at the end of 2016 was $5,250,000. Payment of cash dividends decreases retained earnings, while declaration of share dividends or net income does not.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    1.

    Kiara Company provided the following data:

    12/31/2015 12/31/2016
    Share capital (P100 par value) P 5,000,000 P 5,100,000
    Share premium 2,500,000 2,900,000
    Retained earnings 5,000,000 ?

    During 2016, the entity declared and paid cash dividend of P750,000 and also declared and
    issued a share dividends of P500,000. There were no other changes in shares issued and
    outstanding during 2016. The net income for 2016 was P1,500,000. What is the balance of
    retained earnings on December 31, 2016?
    a. P 5,250,000
    b. P 5,750,000
    c. P 6,250,000
    d. P 6,500,000

    Retained earnings
    Beginning 5,000,000.00
    Cash dividends (750,000.00)
    Share dividends (500,000.00)
    Net income 1,500,000.00
    Ending 5,250,000.00

    2. Which of the following transactions will decrease retained earnings?


    a. Declaration of a bonus issue
    b. Payment of cash dividend
    c. Profit for the period
    d. Issuance of share dividend

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