Question

need help with this retained earnings for kingbird corporation

1,134,200 Brief Exercise 4-10 Statement of retained earnings with PPA Kingbird Corporation has retained earnings of $706,100 at January 1, 2020. Net Income during 2020 was $1,638,400, and cash dividends declared and paid during 2020 totaled $83,100. In 2020, an error pertaining to 2019 was discovered: land costing $89,000 was charged to maintenance and repairs expense. The applicable tax rate for 2019 was 20%. Instructions: Prepare a statement of retained earnings. I 2 of 6 Chapter 04 Homework - Statement of Retained Earnings Exercise 4-12 Statement of retained earnings with PPA Eddie Zambrano Corporation began operations on January 1, 2017. During its first 3 years of operations, Zambrano reported the following: Year Net Income Dividends 2017 14.00 $ 0 2018 125,000 50,000 2019 160,000 50,000 The following information relates to 2020. Income before income tax 240,00 Understatement of 2018 depreciation expense (before taxes) 25,000 Cumulative decrease in income from change in inventory method (before taxes) 35,000 Dividends declared 100,000 Effective tax rate for all years 20% the current year

Answer 1

KINGBIRD CORPORATION Retained Earnings Statement For the year ending December 31, 2020 (89000*80%) Beginning Balance Add- Net Income Add- Error in priod period Sub-Total Less- Cash Dividends declared Ending Balance $ $ $ $ $ $ 706,100 1,638,400 71,200 2,415,700 (83,100) 2,332,600