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Ntebegining of curent yew, Jade Company reported the following rcholdens'equity: Sare capital, 1,500,000 shares Share premium Retained carnings Treasury shares, 100,000 at cost 1,500,000 I5,000,000 K100,000 900,000) All of the outstanding and treasury shares were originall isued for PIl per share. Daring the current year, the following events or transactions occurred eiating to sharcholders' equity: • February 15- Issued 400,000 shares for P12.50 per share. • June 15 - Declared a cash dividend of PO.20 per share to shareholders of record on April I and payable on April 15. This was the first dividend ever declared. • September 15-The president retired. The entity purchased from the retiring president 100,000 shares for P13.00 per share which was equal to market value on this date. These shares were canceled. • December 15 - Declared a cash dividend of P0.20 per share payable carly next year. * Atcurrent year-end, the entityis being suod by two separate parties for patent infringement. The management and outside legal counsel share the following opinion regarding these suits: Likelihood of losing the suit Estimated less Suit Reasonably possible Probable 600,000 400,000 How much should be the total amount of appropriations to be charged against unappropriated retained earmings?

Ntebegining of curent yew, Jade Company reported the following rcholdens'equity: Sare capital, 1,500,000 shares Share premium Retained carnings Treasury shares, 100,000 at cost 1,500,000 I5,000,000 K100,000 900,000) All of the outstanding and treasury shares were originall isued for PIl per share. Daring the current year, the following events or transactions occurred eiating to sharcholders' equity: • February 15- Issued 400,000 shares for P12.50 per share. • June 15 - Declared a cash dividend of PO.20 per share to shareholders of record on April I and payable on April 15. This was the first dividend ever declared. • September 15-The president retired. The entity purchased from the retiring president 100,000 shares for P13.00 per share which was equal to market value on this date. These shares were canceled. • December 15 - Declared a cash dividend of P0.20 per share payable carly next year. * Atcurrent year-end, the entityis being suod by two separate parties for patent infringement. The management and outside legal counsel share the following opinion regarding these suits: Likelihood of losing the suit Estimated less Suit Reasonably possible Probable 600,000 400,000 How much should be the total amount of appropriations to be charged against unappropriated retained earmings?

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 4COP: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,...
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uhe beginning of current year, Jade Company reported the following sharcholders' equity: Share capital, 1,500,000 shares Share premium Retained carnings Treasury shares, 100,000 at cost 1,500,000 I5,000,000 8,100,000 ( 900,000) All of the outstanding and treasury shares were originally issued for PIl per share. During the current year, the following events or transactions occurred relating to shareholders' equity: • February 15- Issued 400,000 shares for P12.50 per share. • June 15 - Declared a cash dividend of PO.20 per share to shareholders of record on April 1 and payable on April 15. This was the first dividend ever declared. • September 15- The president retired. The entity purchased from the retiring president 100,000 shares for P13.00 per share which was equal to market value on this date. These shares were canceled. • December 15 - Declared a cash dividend of PO.20 per share payable carly next year. * Atcurrent year-end, the entity is being sued by two separate parties for patent infringement. The management and outside legal counsel share the following opinion regarding these suits: Estimated Likelihood of losing the suit Reasonably possible Probable loss Suit 600,000 400,000 How much should be the total amount of appropriations to be charged against unappropriated retained earnings?
Transcribed Image Text:uhe beginning of current year, Jade Company reported the following sharcholders' equity: Share capital, 1,500,000 shares Share premium Retained carnings Treasury shares, 100,000 at cost 1,500,000 I5,000,000 8,100,000 ( 900,000) All of the outstanding and treasury shares were originally issued for PIl per share. During the current year, the following events or transactions occurred relating to shareholders' equity: • February 15- Issued 400,000 shares for P12.50 per share. • June 15 - Declared a cash dividend of PO.20 per share to shareholders of record on April 1 and payable on April 15. This was the first dividend ever declared. • September 15- The president retired. The entity purchased from the retiring president 100,000 shares for P13.00 per share which was equal to market value on this date. These shares were canceled. • December 15 - Declared a cash dividend of PO.20 per share payable carly next year. * Atcurrent year-end, the entity is being sued by two separate parties for patent infringement. The management and outside legal counsel share the following opinion regarding these suits: Estimated Likelihood of losing the suit Reasonably possible Probable loss Suit 600,000 400,000 How much should be the total amount of appropriations to be charged against unappropriated retained earnings?
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