Retained Earnings Statement Rolt Company began 2016 with a $150,000 balance in retained earnings. During the...
Retained Earnings Statement
Rolt Company began 2016 with a $150,000 balance in retained earnings. During the year, the following events occurred:
- The company earned net income of $83,000.
- A material error in net income from a previous period was corrected. This error correction increased retained earnings by $7,350 after related income taxes of $3,150.
- Cash dividends totaling $13,000 and stock dividends totaling $19,000 were declared.
- One thousand shares of callable preferred stock that originally had been issued at $105 per share were recalled and retired at the beginning of 2016 for the call price of $115 per share.
- 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.
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Retained Earnings Statement
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Martinez Corp. began operations in 2014. During the years
2014-2016, it reported net income and declared dividends as
follows.
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Dividends declared
2014
$27,000
$ –0–
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234,000
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During 2017, Martinez Corp.:
●
discovered that it had
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●
changed, on January 1 ,2017,
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10 Cooper Industries, Inc., began 2015 with retained earnings of $24.37 milion. During the year it...
10
Cooper Industries, Inc., began 2015 with retained earnings of $24.37 milion. During the year it paid four quarterfy dividends of $0.32 per share to 3.17 million common stockholders. Preferred stockholders, holding 521,000 shares, were paid two semiannual dividends of $0.74 per share. The firm had a net profit after taxes of $5.17 million. Prepare the statement of retained earnings for the year ended December 31, 2015 Complete the statement of retained eamings below (Round to the nearest dollar) Cooper...
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Martinez Corp. began operations in 2014. During the years
2014-2016, it reported net income and declared dividends as
follows.
Net income
Dividends declared
2014
$27,000
$ –0–
2015
118,000
–0–
2016
234,000
48,000
During 2017, Martinez Corp.:
●
discovered that it had
failed, in 2015, to record $44,000 in depreciation on equipment in
one of its warehouses.
●
changed, on January 1 ,2017,
from the average cost to the FIFO method of accounting for its
inventory. If Martinez Corp. had...
6) Complete the following Retained Earnings Statement for the Sunset Sailboat Company. Information: Beginning Retained Earnings, $27,000; Net Income, $15,000; Common Stock Cash Dividends, $3,000; Prior Period Adjustment, the accountants missed a $2,500 expense from last year; Preferred Stock Cash Dividends, $2,000. Retained Earnings Statement Beginning Retained Earnings, January 1 Prior Period Adjustment Adjusted Retained Earnings Balance, January 1 Net Income (Loss) Less: Common Stock Cash Dividends Less: Preferred Stock Cash Dividends Ending Retained Earnings, December 31
Cornerstone Exercise 3-25 Preparing a Retained Earnings Statement Sparrow Company had the following adjusted trial balance at December 31, 2019 Sparrow Company Adjusted Trial Balance December 31, 2019 Debit Credit Cash $3,150 Accounts Receiva ble 5,650 Prepaid Insurance 4,480 42,000 Equipment Accumulated Depreciation, $24,000 Equipment Accounts Payable 2,800 Salaries Payable 4,450 Unearned Service Revenue 3,875 Common Stock 8,000 Retained Earnings 2,255 Dividends 10,500 Service Revenue 99,600 Salaries Expense 49,400 Rent Expense 17,250 Insurance Expense 2,200 Depreciation Expense 4,950 Income Tax...
Below is the retained Earnings account for the year 2020 for Concord Corp. $259,910 Retained earnings, January 1, 2020 Add: Gain on sale of investments (net of tax) Net income Refund on litigation with government, related to the year 2017 (net of tax) Recognition of income earned in 2019, but omitted from income statement in that year (net of tax) $43,510 86,810 23,910 27.710 181.940 441.850 37,310 62,310 Deduct: Loss on discontinued operations (net of tax) Write-off of goodwill (net...
10
Cooper Industries, Inc., began 2015 with retained earnings of $24.37 milion. During the year it paid four quarterfy dividends of $0.32 per share to 3.17 million common stockholders. Preferred stockholders, holding 521,000 shares, were paid two semiannual dividends of $0.74 per share. The firm had a net profit after taxes of $5.17 million. Prepare the statement of retained earnings for the year ended December 31, 2015 Complete the statement of retained eamings below (Round to the nearest dollar) Cooper...
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