Retained earnings statement for mcentire corporation

Reference no: EM13156094

McEntire Corporation began operations on January 1, 2007. During its first 3 years of operations, McEntire reported net income and declared dividends as follows.

Net income Dividends declared
2007 $40,000 $ -0-
2008 125,000 50,000
2009 160,000 50,000

The following information relates to 2010.

Income before income tax $220,000
Prior period adjustment: understatement of 2008 depreciation expense (before taxes) $ 25,000
Cumulative decrease in income from change in inventory methods (before taxes) $ 45,000
Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2011) $100,000
Effective tax rate 40%

(a) Prepare a 2010 retained earnings statement for McEntire Corporation. (Enter all amounts as positive amounts and subtract where necessary.)

Reference no: EM13156094

Questions Cloud

Absorption costing measures contribution to profit : Absorption costing measures contribution to profit as: A) Sales less unit- level costs spent of goods sold. B) Sales less absorption cost of goods sold.

Divergent group of members : The European Union faces a much more divergent group of members than the individual states here in the U.S. What types of regulations have they imposed or suggested for their member countries regarding waste management and release of hazardous mat..

Oxone is sometimes used in keeping swimming pool water clean : Oxone is sometimes used in keeping swimming pool water clean. Describe using chemical reactions how Oxone keeps swiming pool water clean

What will the account balance be after few years : She can earn an annual interest rate of 4% or a nominal interest rate of 3.95% compounded continuously. Which is the best option and at the best interest rate, what will the account balance be after 25 years?

Retained earnings statement for mcentire corporation : (a) Prepare a 2010 retained earnings statement for McEntire Corporation. (Enter all amounts as positive amounts and subtract where necessary.)

What is nash equilibrium price and quantity for each firm : If firm A expects firm B to set its price at $20, what is firm A's best response? If firm B predicts that firm A will price good A at $36, what is firm B's best response? What is the NASH EQUILIBRIUM price and quantity for each firm?

What factors are important in determining a research design : What factors are most important in determining a research design? The response should be relevant to particular area of interest.

Gas phase reaction is second order : The following gas phase reaction is second order. 2C2H4(g)--->C4H8(g) Its half life is 1.51 min when [C2H4] is 0.250 M. a.What is k for the reaction?

What is the new volume of the balloon : A weather balloon has a volume of 750 L when filled with helium at 8 oC at a pressure of 380 torr. What is the new volume of the balloon when the pressure is 0.20 atm and the temperature is -45 oC?

User Account

All Pages