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Henderson's Lawncare Inc. has retained earnings of $460,000 for the current year and earned $250,000 in net income. During the year, the accounting manager discovered an error due to overstatement in net income for the prior period of $65,000. The also company declared the following dividends:$1 per share for current year dividends on 10,000 shares of preferred stock outstanding$1 per share for the dividend in arrears for one year on the 10,000 shares of preferred stock outstanding$0.50 per share for the current-year dividend on 200,000 shares of common stock outstanding.
Instructions:
Problem 1: Make statement of retained earnings for Henderson as of 12/31/2019.
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