Question
26. On January 1, 2017, Chu Corporation had retained earnings of $422,000. During the year, Chu had the following selected transactions: 1. Declared cash dividends
26.
On January 1, 2017, Chu Corporation had retained earnings of $422,000. During the year, Chu had the following selected transactions:
1. Declared cash dividends of $100,000.
2. Suffered a loss of $70,000.
3. Corrected understatement of 2016 profit because of an inventory error $45,000. The company has a 30% income tax rate.
Instructions
Prepare a statement of retained earnings for the year.
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Financial Accounting For MBAs
Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally
3rd Edition
0978727932, 978-0978727932
