The 2009 annual report for Sneer Corporation disclosed that the company declared
ID: 2359067 • Letter: T
Question
The 2009 annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $119.9 million in 2009. It also declared and paid dividends on common stock in the amount of $2 per share. During 2009, Sneers had 1,000,000,000 shares of common authorized; 387,570,300 shares had been issued; 41,670,300 shares were in treasury stock. The balance in Retained earnings was $1,554 million on December 31, 2008, and 2009 Net income was $858 million. I need help putting together a statement of retained earnings for the year ending December 31, 2009 using the information above.Explanation / Answer
Dividends Declared (+D, -SE) 119,900,000
Dividends Payable (+L) 119,900,000
Dividends Payable (-L) 119,900,000
Cash (-A) 119,900,000
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b) Dividends Declared (+D, -SE) 691,800,000
Dividends Payable (+L) 691,800,000
Dividends Payable (-L) 691,800,000
Cash (-A) 691,800,000
Computation of shares outstanding:
Shares Issued 387,570,300
Less: Treasury stock (41,670,300)
Shares outstanding 345,900,000
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Computation of dividends paid:
Shares Outstanding 345,900,000
Times: Dividend Rate $2
Equals: Dividends Declared 691,800,000
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SNEER CORPORATION
Statement of Retained Earnings
For the Year Ended December 31, 2009
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