Make the statement of retained earnings for the year

Assignment Help Accounting Basics

Reference no: EM132591340

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 tax.

The following is required:

Question 1. Prepare the statement of retained earnings for the year ended 2013, and any note disclosures separately.

Question 2. Discuss the restriction of retained earnings that the board of directors can impose and why it would be necessary.

Reference no: EM132591340

Questions Cloud

Describes static budgets and flexible budgets : Provide an example of the type of business or company that would benefit from using a flexible budget.Describes static budgets and flexible budgets.

Find the tension in the rope : A 40 kg box hangs 3 m from the right end. Find the tension in the rope.

Describe how the plan could be executed : Compare global, national, and local approaches to maximize innovation and creativity in IT projects. Develop findings and recommendations for an IT innovation.

Find the tension in the rope on the left : A 8 m long board that has a mass of 6 kg is held up by two vertical ropes. The left rope is 3 m from the left end of the board

Make the statement of retained earnings for the year : Discuss the restriction of retained earnings that the board of directors can impose and why it would be necessary. Prepare the statement of retained earnings

Find the tension in the rope on the right : Each end is held up by a vertical rope. A 60 kg box sits 3 m from the left end. Find the tension in the rope on the right.

Hire and select the best candidate for the job : Hire and select the best candidate for the job. Apply all the organizational behavior theories and concepts you have learned over the past few weeks

Find the mass of the traffic light : A traffic light is hanging from two cables. Cable #1 pulls up and left, making an angle of 80o with the horizontal on the left,

Discuss how the limited liability affects a corporation : Limited liability means that stockholders can only lose the amount of their investment. Discuss how this limited liability affects a corporation.

User Account

All Pages