Jayleah Company reported retained earnings at December 31, 2011, of $310,000. Jayleah had 200,000 shares of common

Question:

Jayleah Company reported retained earnings at December 31, 2011, of $310,000. Jayleah had 200,000 shares of outstanding throughout 2012.
The following transactions occurred during 2012.
1. An error was discovered: in 2010, depreciation expense was recorded at $70,000, but the correct amount was $50,000.
2. A cash of $0.50 per share was declared and paid.
3. A 5% stock was declared and distributed when the market price per share was $15 per share.
4. Net income was $285,000.
Instructions
Prepare a retained earnings statement for 2012.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...