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Needed Asapppp, I want to copy paste it if possible, not on a paper On January 1, 2019, Lundy Corporation provided the following information: 2,000,000
Needed Asapppp, I want to copy paste it if possible, not on a paper
On January 1, 2019, Lundy Corporation provided the following information:
- 2,000,000 shares of $6 par value common stock were authorized to be issued.
- 500,000 shares of 6%, $50 par cumulative preferred stock were authorized to be issued.
- The balance in the common stock account was $5,700,000.
- The balance of the retained earnings account was $900,000.
- The balance in the preferred stock account was $13,750,000.
- The balance in the treasury stock account was $116,000 at a cost of $8 per share.
- Net income for the year was $15,050,000.
- No dividends were in arrears.
During 2019, the Company accounted for the following events:
- On February 20, the companys accountant observed that depreciation on equipment for the year 2018, recorded as $235,400, was overstated by 10% of the correct amount, due to an error in the calculation of the equipments useful life.
- On May 26, the company declared total dividends on preferred stock and $0.75 dividend per share on common stock.
- A 2 for 1 stock split was announced on June 30.
- A 5% stock dividend was declared on December 12, at time of which the price per share of common stock was $10.
Instructions: Prepare a retained earnings statement for the year.
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