Question

Statement of Retained Earnings Landon Corporation was organized on January 2, 2015, with the investment of...

Statement of Retained Earnings

Landon Corporation was organized on January 2, 2015, with the investment of $100,000 by each of its two stockholders. Net income for its first year of business was $97,820. Net income increased during 2016 to $141,840 and to $165,950 during 2017. Landon paid $23,000 in dividends to each of the two stockholders in each of the three years.

Required:

Prepare a statement of retained earnings for the year ended December 31, 2017.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Statement of retained earnings for the year ended December 31, 2017

$
Beginning retained earnings 147660
(+) Net income for the year 165950
(-) Dividend paid (23000*2) 46000
Ending retained earnings 267610
Working note :

Year

2015

2016
Beginning retained earnings    0 51820
(+) Net income for the year 97820    141840
(-) Dividend paid (23000*2)    46000 46000
Ending retained earnings 51820 147660

Ending retained earnings of one year becomes the beginning retained earnings of the next year.

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
Statement of Retained Earnings Landon Corporation was organized on January 2, 2015, with the investment of...
Statement of Retained Earnings Landon Corporation was organized on January 2, 2015, with the investment of $100,000 by each of its two stockholders. Net income for its first year of business was $85,200. Net income increased during 2016 to $125,320 and to $145,480 during 2017. Landon paid $20,000 in dividends to each of the two stockholders in each of the three years. Prepare a statement of retained earnings for the year ended December 31, 2017. Landon Corporation Statement of Retained...
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...
Clint’s Stonework Corporation was organized on January 1, 2015. For its first two years of operations,...
Clint’s Stonework Corporation was organized on January 1, 2015. For its first two years of operations, it reported the following: Net income for 2015 $ 31,800 Net income for 2016 42,800 Dividends for 2015 13,300 Dividends for 2016 18,400 Total assets at the end of 2015 131,000 Total assets at the end of 2016 263,000 Common stock at the end of 2015 90,000 Common stock at the end of 2016 90,000 Required: On the basis of the data given, prepare...
Pullman Corporation had retained earnings of $2,100,000 at January 1, 2015. During the year the company...
Pullman Corporation had retained earnings of $2,100,000 at January 1, 2015. During the year the company experienced a net loss of $900,000 and declared cash dividends of $240,000. Determine the retained earnings balance at December 31, 2015. $1,200,000 $2,760,000 $3,000,000 $960,000
Problem 18-4 Statement of retained earnings [LO18-5, 18-7] Comparative statements of retained earnings for Renn-Dever Corporation...
Problem 18-4 Statement of retained earnings [LO18-5, 18-7] Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2018 annual report as follows. Problem 18-4 Statement of retained earnings [LO18-5, 18-7] Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2018 annual report as follows. RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31, 2018 2017 2016 Balance at beginning of year $ 7,060,452 $ 5,733,552 $ 5,904,552 Net income (loss) 3,488,700...
Anderson Corporation had a credit balance of $43,000 in its Retained Earnings account on December 31,...
Anderson Corporation had a credit balance of $43,000 in its Retained Earnings account on December 31, 2018. Net income of $6,000 was reported on its income statement for the year ended December 31, 2019. Dividends in the amount of $5,625 were declared on December 31, 2018; the dividends are payable to the company's stockholders on February 1, 2019. The balance in its Retained Earnings account on December 31, 2019 equals _____.
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2015:    Common stock—$20 par...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2015:    Common stock—$20 par value, 100,000 shares authorized, 45,000 shares issued and    outstanding $ 900,000      Paid-in capital in excess of par value, common stock 70,000      Retained earnings 370,000      Total stockholders’ equity $ 1,340,000   In year 2016, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 4,500 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 per share cash dividend...
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) $42,300    Net income 85,600    Refund on litigation with government, related to the year 2014 (net of tax) 22,700    Recognition of income earned in 2016, but omitted from income      statement in that year (net of tax) 26,500 177,100 435,800 Deduct:    Loss on discontinued operations (net of tax) 36,100    Write-off of goodwill (net of...
Statement of Stockholders’ equity In its December 31, 2016, annual report, Mattel, Inc. reports the following...
Statement of Stockholders’ equity In its December 31, 2016, annual report, Mattel, Inc. reports the following items: ($ thousands) 2016 Retained earnings, December 31, 2015 $3,745,815 Treasury stock, December 31, 2015 (2,494,901) Contributed Capital, December 31, 2015 2,231,239   Net income for 2016 318,022 Treasury Stock, December 31, 2016 (2,426,749) Dividends during 2016 518,478 Stock issued during 2016 962    Prepare the statement of stockholders’ equity for Mattel, Inc. for the year ended December 31, 2016.
The statement of stockholders’ equity—or the statement of retained earnings—reconciles and reports a firm’s net income,...
The statement of stockholders’ equity—or the statement of retained earnings—reconciles and reports a firm’s net income, dividends paid, shares issued and repurchased, and change in retained earnings during a particular year. Which of the following best describes a firm’s stockholders’ equity? Equity is the sum of what a corporation’s initial stockholders paid when they bought company shares and the earnings that the company has retained over its years of operations. Equity is the difference between a corporation’s paid-in capital and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT