eBook Show Me How Calculator Print Item Retained Earnings Statement Rolt Company

Question

eBook Show Me How Calculator Print Item Retained Earnings Statement Rolt Company began 2016 with a $120,000 balance in retained earnings. During the year, the following events occurred: 1. The company earned net income of $80,000. 2. A material error in net income from a previous period was corrected. This error correction increased retained earnings by $9,800 after related income taxes of $4,20o. 3. Cash dividends totaling $13,000 and stock dividends totaling $17,000 were declared. 4. One thousand shares of callable preferred stock that originally had been issued at $110 per share were recalled and retired at the beginning of 2016 for the call price of $120 per share. 5. Treasury stock (common) was acquired at a cost of $20,000. State law requires a restriction of retained earnings in an equal amount. The company reports its retained earnings restrictions in a note to the financial statements. Required 1. Prepare a statement of retained earnings for the year ended December 31, 2016. ROLT COMPANY Statement of Retained Earnings For Year Ended December 31, 2016 Retained earnings, as previously reported, January 1, 2016 120.000 80,000 9,800 Adjusted retained earnings, January 1, 2016 Add: Net income Less: Cash dividends 13,000 Less: Stock dividends 17,000 Retained earnings, December 31, 2016 Check My Work 1 more Check My work uses temaining Previous Next

Explanation / Answer

Ans) Statement of retained earnings

Particulars Amt in $ Retained earnings beginning balance jan 1 , 2016 120,000 Add: company earned the net income during the year 2016 80,000 Increased retained earnings due to previous period error 9800 Less: Recalled and retired preferred stock (120,000) Cash dividend declared (13,000) Stock dividend declared (17,000) Treasury stock cost (20,000) Retained earnings on 31st dec, 2016 39,800

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.