Reference no: EM133140162
Question - Korea Inc. reported the following account balances at the beginning of the year 2022:
|
Ordinary Share capital, 5 par
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8,200,000
|
|
5% Preference share capital, 100 par
|
4,000,000
|
|
Treasury Shares
|
390,000
|
|
Retained Earnings
|
3,600,000
|
|
Share Premium
|
6,120,000
|
Additional Information:
a. The treasury shares represent 60,000 ordinary shares that were acquired last year. On August 1, 2022, 20,000 treasury shares were sold for 9 per share.
b. On August 11, 2022, 10,000 ordinary shares of Kuya Inc. were acquired at 8 per share
c. Korea issued 10,000 preference acquired at 121 per share and 150,000 ordinary shares for 890,000 on August 31, 2022.
d. 10,000 ordinary shares were reacquired from the public at 8 per share
e. On December 24, 2022; the company declared cash dividends of 0.44 per ordinary share and the annual dividends of the preference shares to shareholders of record on December 1, 2022. Dividends were distributed on February 14, 2023.
f. Net income during the year amounts to 650,000 while Comprehensive Income amounts to 650,000.
g. The financial statements were authorized for issue on January 31, 2023.
Required -
1. Determine the balance of Retained Earnings on December 31, 2022.
2. What amount should be reported as total shareholder's equity on December 31, 2022?