On jan. 1, 2019, Bacardi Limited had retained earnings of $8,000,000. During 2019, the corporation reported net income of $1,500,000, declared dividends of $500,000, and issued common stock for $1,000,000. What were retained earnings on dec 31, 2019? A. $7,500,000 B. $9,000,000 C. $9,500,000 D. $7,000,000

On jan. 1, 2019, Bacardi Limited had retained earnings of $8,000,000. During 2019, the corporation reported net income of $1,500,000, declared dividends of $500,000, and issued common stock for $1,000,000. What were retained earnings on dec 31, 2019? A. $7,500,000 B. $9,000,000 C. $9,500,000 D. $7,000,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 3MC: Prince Corporations accounts provided the following information at December 31, 2019: What should be...

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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.
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