Newland Company reported retained earnings at December 31, 2013, of $310,000. Newland had 200,000 shares of common

Question:

Newland Company reported retained earnings at December 31, 2013, of $310,000. Newland had 200,000 shares of common stock outstanding at the beginning of 2014.The following transactions occurred during 2014.

1. An error was discovered. In 2012, depreciation expense was recorded at $70,000, but the correct amount was $50,000.

2. A cash dividend of $0.50 per share was declared and paid.

3. A 5% stock dividend 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 2014.

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...