On January 1, 2024, Fyre Lite Corporation had retained earnings of $650,000. During the year, Fyre Lite
Question:
On January 1, 2024, Fyre Lite Corporation had retained earnings of $650,000. During the year, Fyre Lite had the following selected transactions:
1. Declared and paid cash dividends, $245,000.
2. Earned profit before income tax, $750,000.
3. Corrected a prior period error of $85,000, before income tax, which resulted in an understatement of profit in 2023.
4. Reacquired 25,000 common shares for $50,000 more than the original issue price. This was the first time the company had ever reacquired its own shares.
5. Completed a 3-for-1 stock split of the common shares. Fyre Lite has a 25% income tax rate and reports under ASPE.
Instructions
Prepare a statement of retained earnings for the year ended December 31, 2024.
Step by Step Answer:
FYRE LITE CORPORATION Statement of Retained Earnings Year Ended December 31 2024 Balance ...View the full answer
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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