The balance in retained earnings on January 1, 2011, for Ola Smith Inc, was $800,000 During the year, the corporation paid cash dividends of $90,000 and distributed a share dividend of $8,000 In addition, the company determined that it had understated its depreciation expense in prior years by $50,...

OLA SMITH INC Retained Earnings Statement For the Year Ended December 31 20 ...

The balance in retained earnings on January 1, 2011, for Ola Smith Inc, was $800,000. During the

Question:

The balance in retained earnings on January 1, 2011, for Ola Smith Inc, was $800,000. During the year, the paid cash dividends of $90,000 and distributed a share of $8,000. In addition, the company determined that it had understated its depreciation expense in prior years by $50,000. Net income for 2011 was $150,000. Prepare the retained earnings statement for 2011.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...