Prepare retained earnings statement for eddie corporation

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Question - Eddie Zambrano Corporation began operations on January 1, 2011. During its first 3 years of operations, Zambrano reported net income and declared dividends as follows.

Net income Dividends declared

2011 $41,400 $ -0-

2012 134,500 56,700

2013 169,200 56,300

The following information relates to 2014.

Income before income tax $234,400

Prior period adjustment: understatement of 2012 depreciation expense (before taxes) $30,100

Cumulative decrease in income from change in inventory methods (before taxes) $42,100

Dividends declared (of this amount, $30,100 will be paid on January 15, 2015) $113,000
Effective tax rate 40%

Prepare a 2014 retained earnings statement for Eddie Zambrano Corporation. (List items that increase retained earnings first.)

Reference no: EM131929316

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