Statement of retained earnings preparation (Learning Objective 3) 1015 min. Delta Alarm, Inc., began the year with
Question:
Statement of retained earnings preparation (Learning Objective 3)
10–15 min.
Delta Alarm, Inc., began the year with $20,000 of common stock and $32,000 of retained earnings. On May 5, investors bought $12,000 of additional stock in the business.
On August 22, the business purchased land valued at $80,000. The income statement for the year ended December 31, 2014, reported a net loss of $9,000.
During this fiscal year, the business paid $300 each month for dividends.
Requirements 1. Prepare Delta Alarm’s statement of retained earnings for the year ended December 31, 2014.
2. Did the retained earnings of the business increase or decrease during the year?
What caused this change?
AppendixLO1
Step by Step Answer:
Financial Accounting
ISBN: 9781292019543
3rd Global Edition Edition
Authors: Robert Kemp, Jeffrey Waybright, Pearson Education