| Prepare a retained earnings statement for the year. (List items that increase retained earnings first.) | KARP COMPANY Retained Earnings Statement December 31, 2017For the Quarter Ended December 31, 2017For the Year Ended December 31, 2017 | | Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues | $ | | Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues | ( ) | | Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues | | | AddLess: | Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues | | | | | AddLess: | | Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues | $ | | Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues | | | Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues | | | | | Cash Dividends?CommonCash Dividends?PreferredCorrection of 2016 Depreciation ExpenseDividendsExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock Dividends?CommonTotal ExpensesTotal Revenues | $ |
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Problem 14-2A The stockholders' equity accounts of Karp Company at January 1, 2017, are as follows. Preferred Stock, 6%, $50 par Common Stock, $3 par Paid-in Capital in Excess of ParPreferred Stock Paid-in Capital in Excess of ParCommon Stock Retained Earnings $645,000 472,500 199,000 291,000 798,000 There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events. July 1 Aug. 1 Sept. 1 Dec. 1 15 31 31 Declared a $0.60 cash dividend per share on common stock. Discovered $27,000 understatement of depreciation expense in 2016. (Ignore income taxes.) Paid the cash dividend declared on July 1. Declared a 15% stock dividend on common stock when the market price of the stock was $17 per share. Declared a 6% cash dividend on preferred stock payable January 15, 2018. Determined that net income for the year was $300,000. Recognized a $194,000 restriction of retained earnings for plant expansion. Don't show me this message again for the assignment Journalize the transactions, events, and closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To close net income) (To close cash dividends) (To close stock dividends) Don't show me this message again for the assignment Link to Text Link to Text Link to Text Enter the beginning balances in the accounts, and post to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.) (Post entries in the order of journal entries presented in the previous part.) Preferred Stock Date Explanation Re Debit f Balance Credit Balance Credit Balance Credit Balance Credit Balance Credit Balance Credit Balance Common Stock Date Explanation Re Debit f Balance Common Stock Dividends Distributable Date Explanation Re Debit f Paid-in Capital in Excess of ParPreferred Stock Date Explanation Re Debit f Balance Paid-in Capital in Excess of ParCommon Stock Date Explanation Re Debit f Balance Retained Earnings Date Explanation Re Debit f Balance Prior period adjustment depreciation expense understated Net income Cash dividends Stock dividends Cash Dividends Date Explanation Re Debit f Credit Balance Re Debit f Credit Balance Stock Dividends Date Explanation Don't show me this message again for the assignment Link to Text Link to Text Link to Text Prepare a retained earnings statement for the year. (List items that increase retained earnings first.) KARP COMPANY Retained Earnings Statement $ ( ) : : $ $ Don't show me this message again for the assignment Link to Text Link to Text Link to Text Prepare a stockholders' equity section at December 31, 2017. (Enter account name only and do not provide descriptive information.) KARP COMPANY Balance Sheet (Partial) $ $ $
