Retained Earnings StatementRolt Company began 2019 with a $150,000 balance in retained earnings. During the year, the following events occurred:The company earned net income of $79,000.A material error in net income from a previous period was corrected. This error correction increased retained earnings by $7,980 after related income taxes of $3,420.Cash dividends totaling $11,000 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 $22,000. 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 COMPANYStatement of Retained EarningsFor Year Ended December 31, 2019Retained earnings, as previously reported, January 1, 2019 $fill in the blank 1 fill in the blank 3Adjusted retained earnings, January 1, 2019 $fill in the blank 4 fill in the blank 6 $fill in the blank 7 $fill in the blank 9 fill in the blank 11 fill in the blank 13fill in the blank 14Retained earnings, December 31, 2019 $fill in the blank 15

Ending Retained earnings= Beginning Retained earnings + Net income - Dividends - Loss on retirement…

Answered: Rolt Company began 2019 with a $150,000…

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 9E

See similar textbooks

Related questions

Question

Retained Earnings Statement

Rolt Company began 2019 with a $150,000 balance in retained earnings. During the year, the following events occurred:

The company earned net income of $79,000.
A material error in net income from a previous period was corrected. This error correction increased retained earnings by $7,980 after related income taxes of $3,420.
Cash dividends totaling $11,000 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 $22,000. 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
For Year Ended December 31, 2019
Retained earnings, as previously reported, January 1, 2019		$fill in the blank 1
		fill in the blank 3
Adjusted retained earnings, January 1, 2019		$fill in the blank 4
		fill in the blank 6
		$fill in the blank 7
	$fill in the blank 9
	fill in the blank 11
	fill in the blank 13	fill in the blank 14
Retained earnings, December 31, 2019		$fill in the blank 15

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions