Doris Corporation has retained earnings of 684,800 at January 1, 2019. Net income during 2019 was 1,690,600, and cash dividends declared and paid during 2019 totaled 84,200. Prepare a retained earnings statement for the year ended December 31, 2019. (List items that increase retained earnings first.)
Q: For the year ending December 31, 2020, Oriole Inc. reports net income $142,000 and cash dividends…
A: Retained Earning: Retained Earning are the undistributed income that belongs to the owner of the…
Q: Wildhorse Corporation has retained earnings of $677,100 at January 1, 2020. Net income during 2020…
A: The retained earnings are referred to as the profits of the company that is kept in the company for…
Q: Windsor Corporation has retained earnings of $706,000 at January 1, 2020. Net income during 2020 was…
A: Ending Retained earnings balance = Beginning Retained earnings balance + Net Income - Dividend…
Q: The balance in “Retained Earnings” on January 1, 2019 for Glored Corporation was $575,000. During…
A: Retained earnings statement is an essential part of the financial statement. The ending balance can…
Q: The King Mattress Company had the following operating results for 2018-2019. In addition, the…
A: Answer :- correct option is 4.6 .
Q: On jan. 1, 2019, Bacardi Limited had retained earnings of $8,000,000. During 2019, the corporation…
A: Retained earnings are the free reserves that are attributable to the owners of the entity. Profits…
Q: Blue Corporation has retained earnings of $689,900 at January 1, 2020. Net income during 2020 was…
A: Retained earnings: Retained earnings are that portion of profits which are earned by a company but…
Q: Kingston, Inc. had beginning retained earnings of $135,000 on January 1, 2018. During the year,…
A: Retained earnings: Retained earnings are that portion of profits which are earned by a company but…
Q: Terps Company’s Total Assets on January 1, 2018 were $270,000, and on December 31, 2018, were…
A: Expenses: Expenses are referred to as the cost of doing business. It is the cost incurred by a…
Q: Kingbird Corporation has retained earnings of $710,000 at January 1, 2020. Net income during 2020…
A: Retained Earnings are the amount of a business's profits left to the company after the distribution…
Q: 33. In 2019, Luscious Lemons reported net income of $16,335 thousand, retained earnings at the…
A: Retained earnings: Retained earnings are the portion of earnings kept by the business for the…
Q: Portman Corporation has retained earnings of $675,000 at January 1, 2020. Net income during 2020 was…
A: Given information is: Portman Corporation has retained earnings of $675,000 at January 1, 2020. Net…
Q: Grand Rapids Consulting Inc. began 2019 with a retained earnings balance of $38,100 and hasthe…
A: Retained earnings seem to be the earnings that remain with the firm just after the disbursement of…
Q: Pullman Corporation had retained earnings of €2,100,000 at January 1, 2019. During the year the…
A: Statement of retained earnings: The statement of retained earnings shows the change in the retained…
Q: on December 31, 2019, retained earnings has a normal balance of $15,800. on December 31, 2020,…
A: The retained earnings are the earnings kept to be distributed to the shareholders of the…
Q: Using the following company W information, prepare a retained earnings statement. *Retained…
A: Retained earnings are accumulated profits of a company not distributed as dividends.
Q: At the beginning of its fiscal year July 1, 2020, RPC had a balance of $2,150,000. It had generated…
A: The Statement of Retained Earnings provides an overview of the Changes in the company's retained…
Q: Pong Corp has retained earnings of 693.600 at January 1, 2020. Net income during 2020 was 1,546,000,…
A: Retained earnings are the amount which was retained by the organisation after all of its expenses…
Q: Presented below is selected information related to Sheridan Company at December 31, 2019. Sheridan…
A: Assets: It is a resource that will generate future benefits and revenue for the company. It…
Q: During 2021, your firm reported net income of $600 and paid a $120 cash dividend. The Dec 31, 2020…
A: Retained earnings Balance on December 31, 2021 = Retained Earnings Balance on December 31, 2020 +…
Q: ARR Corporation’s account balances during 2019 showed the following changes, all increases: Assets…
A: Net Loss = Assets - Liabilities - Ordinary Share Capital - Dividends=$3,560,000 - $1,080,000 -…
Q: Brantly, Inc. had beginning retained earnings of $140,000 on January 1, 2024. During the year,…
A: Ending retained earnings = Beginning retained earnings + Net income- Dividend declared
Q: The following information pertains to BTS Co. for the year. · Net assets, Jan.1, 2021-…
A: Increase in Net assets = Net assets, Dec. 31. 2021 - Net assets, Jan.1, 2021 = P2,112,960-1,008,480…
Q: Prepare a retained earnings statement for the year ended December 31, 2019. Sodex Corporation has…
A: Retained earnings was the amount retained by the company after all of its expenses which includes…
Q: Please consider the following financial numbers for Carridine Company and then prepare answers to…
A: Net income is the income which is left with the company after paying off its expenses. Net income is…
Q: Upright Company reported a retained earnings balance of P4,000,000 on January 1,2021. In August…
A: Retained earnings refer to the accumulated portion of the profits of business that is not…
Q: Below is some selected information from the financial statements of ManyFaces, Ltd: As of As of…
A: Beginning equity = Beginning assets - Beginning liabilities = 3930560-2063990 = $1,866,570
Q: For the year ending December 31, 2022, Sheridan Inc. reports net income $147,000 and cash dividends…
A: Formula: Ending Retained earnings balance = Beginning retained earnings + Net income - Dividends…
Q: For the Year ended December 2019. Alaska company , reported net income of $ 4,200 on revenues of $…
A: Financial ratios show the relationship between two financial items on a balance sheet, income…
Q: The King Mattress Company had the following operating results for 2018-2019. In addition, the…
A: Market value of the company equity is the market price of the stock multiplied with the number of…
Q: Prepare a retained earnings statement for the year ended December 31, 2021 in proper format: Ladila…
A: Retained earnings statement is the statement created as notes to the financial statement that shows…
Q: eturn on Assets Sue Company reports the following information in its financial statements. Numbers…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: Retained Profits of Green Ltd at 1 July 2019 were $8,000. The accounting records for the year ended…
A: Net Income = Credit sales + Interest earned - Expenses incurred = $25,000 + $500 - $14,600 = $10,900
Q: On January 1, 2022, Sheridan Company had retained earnings of $527,000. During the year, Sheridan…
A: Ending retained earnings balance = Beginning retained earnings balance + Net income - total dividend
Q: In the Income Statement for the year ended 31 December 2019, a company reported net income of $…
A: Definition: Retained earnings: Retained earnings are that portion of profits that are earned by a…
Q: Prepare the stockholders’ equity section of the balance sheet for Wiley Corporation on December 31,…
A: Shareholders’ Equity is a part of Balance sheet that is shown under Equity & Liabilities side.…
Q: On January 1, 2020, Windsor, Inc. had retained earnings of $498,000. During the year, Windsor had…
A: Given that, January 1, 2020, Windsor, Inc. had retained earnings of $498,000 transactions for the…
Q: Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $103,030 and…
A: Capital is the residual value of assets after reducing the liabilities Capital = Assets -…
Q: 1. As of December 31, 2019, XYZ Company reported assets of $7,400,000, liabilities of $2,200,000,…
A: Statement of financial position forms a part of financial statements of the company and is prepared…
Q: The company shows a balance of ₱299,500 as of December 31, 2018. During 2019, the company…
A: Formula: Ending Retained earnings = Beginning Retained Earnings + Net Income - Cash dividends paid
Q: BE4-9 Portman Corporation has retained earnings of $675,000 at January 1, 2020. Net income during…
A: Statement of Retained Earnings is a financial statement that represents changes in earnings over a…
Q: At the beginning of its fiscal year on April 1, 2018, Extra Vienna Oil Corp, had a balance of…
A: Retained earnings (RE) is the amount of net income left over for the business after it has paid out…
Q: Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for…
A: Earnings per share=Net income (loss)No. of common shares
Q: On December 31, 2020, the balance sheet of Legend Corporation shows a total equity of P1,260,000.…
A: Retained earning means amount of profit remain after all the adjustment of expense and various…
Q: For the year ending December 31, 2020, Lily Inc. reports net income of $145,000 and cash dividends…
A: Given that Net income $145000 cash dividends $87500 Retained earnings as on Jan 1= $222500
Q: Metlock Corporation has retained earnings of $681,500 at January 1, 2020. Net income during 2020 was…
A: Step 1 Retained earnings are the amount, which is left after the distribution of dividends and…
Q: The December 31, 2018, balance sheet of Whelan, Inc., showed long-term debt of $1,385,000, $137,000…
A: Cash flow to creditors= Interest paid - Net new borrowing = Interest paid - (LT Debt ending - LT…
Q: Splendid Corporation has retained earnings of 707,000 at January 1, 2020. Net income during 2020 was…
A: Opening retained earnings will be increased by the amount of net income earned during the year .…
Q: Applying the Fundamental Accounting Equation At the beginning of 2019, KJ Corporation had total…
A: As per accounting equation, Total of assets should be equal to total liabilities and equity all the…
Q: At the end of the year of 2019, Red Barney Inc. has a total assets of P 10, 556,964 and total…
A: Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by…
Step by step
Solved in 2 steps
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000
- Included in the December 31, 2018, Jacobi Company balance sheet was the following shareholders equity section: The company engaged in the following stock transactions during 2019: Required: 1. Prepare journal entries to record the preceding transactions. 2. Prepare the December 31, 2019, shareholders equity section (assume that 2019 net income was 270,000).Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Gray Company lists the following shareholders equity items on its December 31, 2018, balance sheet: The following stock transactions occurred during 2019: Required: 1. Prepare journal entries to record the preceding transactions. 2. Prepare the December 31, 2019, shareholders equity section (assume that 2019 net income was 225,000).Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
- Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of 1.28 per share was declared and paid. 2. Land was sold at a pretax gain of 6,300. 3. Division X (a major component of the company) was sold at a pretax gain of 4,700. It had incurred a 9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a 5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders equity is 90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders Equity).Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.