Question
Retained Earnings Statement Rolt Company began 2019 with a $125,000 balance in retained earnings. During the year, the following events occurred: The company earned net
Retained Earnings Statement Rolt Company began 2019 with a $125,000 balance in retained earnings. During the year, the following events occurred: The company earned net income of $82,000. A material error in net income from a previous period was corrected. This error correction increased retained earnings by $9,100 after related income taxes of $3,900. Cash dividends totaling $10,000 and stock dividends totaling $16,500 were declared. One thousand shares of callable preferred stock that originally had been issued at $110 per share were recalled and retired at the beginning of 2019 for the call price of $115 per share. Treasury stock (common) was acquired at a cost of $17,000. State law requires a restriction of retained earnings in an equal amount. The company reports its retained earnings restrictions in a note to the financial statements.
Required:
Prepare a statement of retained earnings for the year ended December 31, 2019.
ROLT COMPANY | ||
Statement of Retained Earnings | ||
For Year Ended December 31, 2019 | ||
Retained earnings, as previously reported, January 1, 2019 | ||
Adjusted retained earnings, January 1, 2019 | ||
Retained earnings, December 31, 2019 |
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