Pumpkin Spice Corp reported retained earnings of $4,000,000 at December 31, 2019. In 2020, the company earned $500,000 of profit before tax. Pumpkin Spice Corp.
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Pumpkin Spice Corp reported retained earnings of $4,000,000 at December 31, 2019. In 2020, the company earned $500,000 of profit before tax. Pumpkin Spice Corp. declared a $100,000 cash dividend and paid a $70,000 cash dividend in 2020. The company also incurred a $25,000 charge to retained earnings for the reacquisition of common shares. Pumpkin Spice Corp Income tax rate is 25%
Required: Prepare a Statement of Retained Earnings for Pumpkin Spice Corporation for the year ended December 31, 2020
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Authors: Steven M. Bragg
3rd Edition
0470403721, 978-0470403723
