Acct 102 HelpIn a Statement of Retained Earnings, which statement is correct?Multiple ChoiceBoth cash dividends and stock dividends would be deducted, only for common stock.Prior period adjustments are always a deduction from opening Retained Earnings balance.Ending Retained Earnings balance excludes Net Income for the year.Statement of Retained Earnings is a rollforward presenting the opening balance for the period, plus net income for the year, minus all dividends. It may beadjusted for prior period errors, if significantNext >40 of 50 EPrev

Retained earnings represent the earnings of the company accumulated over a period of time. The…

Answered: of Retained Earnings,

Business

Accounting

of Retained Earnings,

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.3E

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Question

Acct 102

Help
In a Statement of Retained Earnings, which statement is correct?
Multiple Choice
Both cash dividends and stock dividends would be deducted, only for common stock.
Prior period adjustments are always a deduction from opening Retained Earnings balance.
Ending Retained Earnings balance excludes Net Income for the year.
Statement of Retained Earnings is a rollforward presenting the opening balance for the period, plus net income for the year, minus all dividends. It may be
adjusted for prior period errors, if significant
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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).
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