Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 16, Problem 8E
1.
To determine
Ascertain the statement of the
2.
To determine
Provide a note as to disclose the restriction placed on retained earnings
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Retained Earnings Statement
Rolt Company began 2016 with a $150,000 balance in retained earnings. During the year, the following events occurred:
1. The company earned net income of $74,000.
2. A material error in net income from a previous period was corrected. This error correction increased retained earnings by $8,470 after related income taxes of $3,630.
3. Cash dividends totaling $15,000 and stock dividends totaling $20,000 were declared.
4. One thousand shares of callable preferred stock that originally had been issued at $110 per share were recalled and retired at the beginning of 2016 for the call price of $120 per share.
5. Treasury stock (common) was acquired at a cost of $16,000. 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:
1. Prepare a statement of retained earnings for the year ended December 31, 2016.
ROLT COMPANY
Statement of Retained…
Retained Earnings Statement
Rolt Company began 2019 with a $105,000 balance in retained earnings. During the year, the following events occurred:
The company earned net income of $86,000.
A material error in net income from a previous period was corrected. This error correction increased retained earnings by $9,590 after related income taxes of $4,110.
Cash dividends totaling $12,000 and stock dividends totaling $18,500 were declared.
One thousand shares of callable preferred stock that originally had been issued at $115 per share were recalled and retired at the beginning of 2019 for the call price of $125 per share.
Treasury stock (common) was acquired at a cost of $19,000. 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.
options for first blue arrow pull down menu(Retained…
Retained Earnings Statement
Rolt Company began 2019 with a $135,000 balance in retained earnings. During the year, the following events occurred:
The company earned net income of $74,000.
A material error in net income from a previous period was corrected. This error correction increased retained earnings by $9,800 after related income taxes of $4,200.
Cash dividends totaling $11,500 and stock dividends totaling $16,000 were declared.
One thousand shares of callable preferred stock that originally had been issued at $115 per share were recalled and retired at the beginning of 2019 for the call price of $125 per share.
Treasury stock (common) was acquired at a cost of $25,000. 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…
Chapter 16 Solutions
Intermediate Accounting: Reporting And Analysis
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