Question
SETUP: Newland Company reported retained earnings at December 31, 2016, of $302,500. Newland had 206,500 shares of common stock outstanding at the beginning of 2017.
SETUP: Newland Company reported retained earnings at December 31, 2016, of $302,500. Newland had 206,500 shares of common stock outstanding at the beginning of 2017. The following transactions occurred during 2017:
1. An error was discovered. In 2015, depreciation expense was recorded at $68,000, but the correct amount was $46,000.
2. A cash dividend of $0.55 per share was declared and paid.
3. A 5% stock dividend was declared and distributed when the market price per share was $16 per share. 4. Net income was $287,000.
Prepare a retained earnings statement for 2017. (List items that increase retained earnings first.)
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