Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 16, Problem 8E
1.
To determine
Ascertain the statement of the
2.
To determine
Provide a note as to disclose the restriction placed on retained earnings
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Retained Earnings Statement
Rolt Company began 2019 with a $105,000 balance in retained earnings. During the year, the following events occurred:
The company earned net income of $86,000.
A material error in net income from a previous period was corrected. This error correction increased retained earnings by $9,590 after related income taxes of $4,110.
Cash dividends totaling $12,000 and stock dividends totaling $18,500 were declared.
One thousand shares of callable preferred stock that originally had been issued at $115 per share were recalled and retired at the beginning of 2019 for the call price of $125 per share.
Treasury stock (common) was acquired at a cost of $19,000. 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:
Prepare a statement of retained earnings for the year ended December 31, 2019.
options for first blue arrow pull down menu(Retained…
Retained Earnings Statement
Rolt Company began 2019 with a $150,000 balance in retained earnings. During the year, the following events occurred:
The company earned net income of $79,000.
A material error in net income from a previous period was corrected. This error correction increased retained earnings by $7,980 after related income taxes of $3,420.
Cash dividends totaling $11,000 and stock dividends totaling $16,000 were declared.
One thousand shares of callable preferred stock that originally had been issued at $115 per share were recalled and retired at the beginning of 2019 for the call price of $125 per share.
Treasury stock (common) was acquired at a cost of $22,000. 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:
Prepare a statement of retained earnings for the year ended December 31, 2019.
ROLT COMPANY
Statement of Retained Earnings…
Current Attempt in Progress
On January 1, 2022, Pharoah Corporation had retained earnings of $546,000. During the year, Pharoah had the following
selected transactions.
1.
2.
3.
4.
Declared and paid cash dividends $126,000.
Corrected overstatement of 2021 net income because of inventory error $43,000.
Earned net income $348,000.
Declared and paid stock dividends $63,000.
Determine the retained earnings balance at the end of the year.
Retained earnings $
Chapter 16 Solutions
Intermediate Accounting: Reporting And Analysis
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