Prepare a retained earnings statement for 2017

The post-closing trial balance of Kingbird Company SpA at December 31, 2017, contains the following equity accounts. Share Capital-Preference (14,900 shares issued) Share Capital-Ordinary (255,400 shares issued) Share Premium-Preference Share Premium-Ordinary Ordinary Share Dividends Distributable Retained Earnings 745,000 3,831,000 257,700 408,500 383,100 958,520 A review of the accounting records reveals the following. inmwona 1. No errors have been made in recording 2017 transactions or in preparing the closing entry for net income. 2. Preference shares are 50 par, 8%, and cumulative; 14,900 shares have been outstanding since January 1, 2016. 3. Authorized shares are 20,000 preference shares, 510,800 ordinary shares with a 15 par value. 4 The January 1 balance in Retained Earnings was 1,116,500. 5. On July 1, 18,600 ordinary shares were issued for cash at 16 per share. 6. On September 1, the company discovered an understatement error of 84,200 in computing depreciation in 2016. The net of tax effect of 58,940 was properly debited directly to Retained Earnings. 7. A cash dividend of 258,600 was declared and properly allocated to preference and ordinary shares on October 1. No dividends were paid to preference shareholders in 2016. 8. On December 31, a 10% ordinary share dividend was declared out of retained earnings on ordinary shares when the market price per share was 16. 9. Net income for the year was 568,200. 10. On December 31, 2017, the directors authorized disclosure of a 195,100 restriction of retained earnings for plant expansion. Prepare a retained earnings statement for 2017. (List items that increase retained earnings first.) KINGBIRD COMPANY SpA Retained Earnings Statement For the Year Ended December 31, 2017 Retained Earnings, January 1, as reported 1,116,500 Correction of Overstatement of 2016 Net Income v 58,940 Retained Earnings, January 1, as adjusted Add : Net Income / (Loss) 568,200 Less : Cash Dividends 258,600 Share Dividends Retained Earnings, December 31