Bindra A.. reported retained earnings at December 31, 2019, of 310,000. Bindra had 200,000 shares outstanding at

Question:

Bindra A.Ş. reported retained earnings at December 31, 2019, of ₺310,000. Bindra had 200,000 shares outstanding at the beginning of 2020.

The following transactions occurred during 2020.
1. An error was discovered. In 2018, 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% share 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 2020.

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...

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