Question

Rolt Company began 2016 with a $130,000 balance in retained earnings. During the year, the following...

Rolt Company began 2016 with a $130,000 balance in retained earnings. During the year, the following events occurred: The company earned net income of $76,000. A material error in net income from a previous period was corrected. This error correction increased retained earnings by $10,360 after related income taxes of $4,440. Cash dividends totaling $11,000 and stock dividends totaling $18,500 were declared. One thousand shares of callable preferred stock that originally had been issued at $105 per share were recalled and retired at the beginning of 2016 for the call price of $115 per share. Treasury stock (common) was acquired at a cost of $23,000. 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.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Retained Earnings Statement Rolt Company began 2016 with a $145,000 balance in retained earnings. During the...
Retained Earnings Statement Rolt Company began 2016 with a $145,000 balance in retained earnings. During the year, the following events occurred: The company earned net income of $90,000. A material error in net income from a previous period was corrected. This error correction increased retained earnings by $10,150 after related income taxes of $4,350. Cash dividends totaling $12,500 and stock dividends totaling $19,500 were declared. One thousand shares of callable preferred stock that originally had been issued at $105 per...
Company B began 2018 with a $110,000 balance in retained earnings. The following events occurred during...
Company B began 2018 with a $110,000 balance in retained earnings. The following events occurred during the year: Cash dividends of $18,500 were declared. 4,500 shares of callable preferred stock were recalled and retired for a price of $225 per share. The stock was originally issued for $150 per share. Net income was $550,000. A material error in net income for a previous period was corrected. The correction of the error decreased retained earnings by $18,500 after a related income...
Restrictions Pemberton Company has a retained earnings balance of $400,000 at the end of 2016. During...
Restrictions Pemberton Company has a retained earnings balance of $400,000 at the end of 2016. During 2016, it had issued $100,000 of 5-year, 12%, long-term bonds. The bond provisions require that each year over the 5-year period an additional $20,000 of retained earnings be unavailable for dividends. This restriction is in addition to any other retained earnings restrictions that the company might make. At the end of 2016, Pemberton held treasury stock costing $15,000. Required: Show how Pemberton would report...
1. Prepare a retained earnings statement for the year. Ending balance $566,000 2. Prepare a stockholders'...
1. Prepare a retained earnings statement for the year. Ending balance $566,000 2. Prepare a stockholders' equity section at December 31, 2017. Total stockholders' equity $2,898,000 The stockholders' equity accounts of Karp Company at January 1, 2017, are as follows. Preferred Stock, 6%, $50 par $600,000 Common Stock, $5 par 800,000 Paid-in Capital in Excess of Par—Preferred Stock 200,000 Paid-in Capital in Excess of Par—Common Stock 300,000 Retained Earnings 800,000 There were no dividends in arrears on preferred stock. During...
On December 31, 2016, the balance in retained earnings is $20,000. On December 31, 2017, the...
On December 31, 2016, the balance in retained earnings is $20,000. On December 31, 2017, the balance in retained earnings is $19,100. During 2017, dividends of $4,000 were declared and paid. What is the amount of net income for 2017? a) 900 b) 4900 c) 3100 d) (900) C? 19,100 + 4000 - 20,000 = 3100 ?
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years...
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2016, 2017, and 2018. RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2018 2017 2016 Balance at beginning of year $ 6,851,992 $ 5,497,752 $ 5,654,552 Net income (loss) 3,311,700 2,270,900 (156,800 ) Deductions: Stock dividend (34,000 shares) 245,000 Common shares retired, September 30 (130,000 shares) 215,660 Common stock cash dividends 892,950 701,000 0 Balance at end...
Below is the Retained Earnings account for the year 2017 for Buffalo Corp. Retained earnings, January...
Below is the Retained Earnings account for the year 2017 for Buffalo Corp. Retained earnings, January 1, 2017 $258,700 Add:    Gain on sale of investments (net of tax) $42,300    Net income 85,600    Refund on litigation with government, related to the year 2014 (net of tax) 22,700    Recognition of income earned in 2016, but omitted from income      statement in that year (net of tax) 26,500 177,100 435,800 Deduct:    Loss on discontinued operations (net of tax) 36,100    Write-off of goodwill (net of...
Rockwell Inc. reported the following results for the year ended June 30, 2016: Retained earnings, July...
Rockwell Inc. reported the following results for the year ended June 30, 2016: Retained earnings, July 1, 2015 $3,799,000 Net income 704,900 Cash dividends declared 101,900 Stock dividends declared 49,300 Prepare a retained earnings statement for the fiscal year ended June 30, 2016. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers. The word “Less” is not required.
Cooper Industries, Inc., began 2019 with retained earnings of $24.15 million. During the year it paid...
Cooper Industries, Inc., began 2019 with retained earnings of $24.15 million. During the year it paid four quarterly dividends of $0.32 per share to 3.08 million common stockholders. Preferred stockholders, holding 493,000 shares, were paid two semiannual dividends of $0.73 per share. The firm had a net profit after taxes of $5.41 million. Prepare the statement of retained earnings for the year ended December 31, 2019.
In 2016, Dalia Corp., a calendar fiscal-year company, discovered that depreciation expense was erroneously overstated $65,000...
In 2016, Dalia Corp., a calendar fiscal-year company, discovered that depreciation expense was erroneously overstated $65,000 in both 2014 and 2015 for financial reporting purposes. Net income in 2016 is correct. The tax rate is 35%. The error was made only for financial reporting, affecting depreciation and deferred income tax accounts. CCA had been recorded correctly, and thus there will be no change in taxes payable. Additional information: 2016 2015 Beginning retained earnings $452,000 $429,000 Earnings (includes error in 2015)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT