The shareholders’ equity section of Haemul Pajeon Co. as of Dec. 31, 2019, contained the ff. accounts: Ordinary share, 25,000 shares authorized, 10,000 shares outstanding. P 30,000 Capital contributed in excess of par 40,000 Retained earnings 80,000 Haemul Pajeon’s board of directors declared a 10% bonus issue on April 1, 2020, when the market value of the share was P7 per share. Accordingly, 1,000 new shares were issued. Haemul Pajeon’s entire share has a par value of P3. Assuming Haemul Pajeon sustained a net loss of P12,000 for the quarter ended March 31, 2020, what amount shall be reported as retained earnings on April 1, 2020? a. P 61,000 b. P 73,000 c. P 68,000 d. P 64,000
The shareholders’ equity section of Haemul Pajeon Co. as of Dec. 31, 2019, contained the ff. accounts:
Ordinary share, 25,000 shares authorized, 10,000 shares outstanding. P 30,000
Capital contributed in excess of par 40,000
Retained earnings 80,000
Haemul Pajeon’s board of directors declared a 10% bonus issue on April 1, 2020, when the market value of the share was P7 per share. Accordingly, 1,000 new shares were issued. Haemul Pajeon’s entire share has a par value of P3. Assuming Haemul Pajeon sustained a net loss of P12,000 for the quarter ended March 31, 2020, what amount shall be reported as retained earnings on April 1, 2020?
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