Question
The balance in retained earnings on January 1, 2017, for Palmer Inc. was $750,000. During the year, the corporation paid cash dividends of $88,000 and
The balance in retained earnings on January 1, 2017, for Palmer Inc. was $750,000. During the year, the corporation paid cash dividends of $88,000 and distributed a stock dividend of $7,600. In addition, the company determined that it had understated its insurance expense in prior years by $51,000. Net income for 2017 was $130,000. Prepare the retained earnings statement for 2017. (List items that increase retained earnings first.)
| PALMER INC. Retained Earnings Statement For the Quarter Ended December 31, 2017For the Year Ended December 31, 2017December 31, 2017 | |||
| Cash DividendsCorrection for Overstatement of Net Income in Prior PeriodExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues | $ | ||
| Cash DividendsCorrection for Overstatement of Net Income in Prior PeriodExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues | |||
| Cash DividendsCorrection for Overstatement of Net Income in Prior PeriodExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues | |||
| Add Less :Cash DividendsCorrection for Overstatement of Net Income in Prior PeriodExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues | |||
| AddLess : | |||
| Cash Dividends Correction for Overstatement of Net Income in Prior Period Expenses Net Income / (Loss) Balance, January 1, as reported Balance, January 1, as adjusted Balance, December 31 Revenues Stock Dividends Total Expenses Total Revenues | $ | ||
| Cash Dividends Correction for Overstatement of Net Income in Prior Period Expenses Net Income / (Loss) Balance, January 1, as reported Balance, January 1, as adjusted Balance, December 31 Revenues Stock Dividends Total Expenses Total Revenues | |||
| Cash DividendsCorrection for Overstatement of Net Income in Prior PeriodExpensesNet Income / (Loss)Balance, January 1, as reportedBalance, January 1, as adjustedBalance, December 31RevenuesStock DividendsTotal ExpensesTotal Revenues | $ | ||
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Managerial Accounting Manufacturing And Service Applications
Authors: Arnold Schneider, Harold M. Sollenberger
4th Edition
0759350426, 978-0759350427
