Retained Earning Statement McEntire Corporation began operations
Retained Earning Statement McEntire Corporation began operations on January 1, 2007. During its first 3 years of operations. McEntire reported net income and declared dividends as follows.
The following information relates to 2010.
Income before income taxâ¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦...$220.000
Prior period adjustment: understatement of 2008 depreciation expense (before taxes)â¦â¦..$ 25.000
Cumulative decrease in income from change in inventory methods (before taxes)â¦â¦â¦â¦.$45,000
Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2011) â¦â¦â¦â¦â¦â¦$100,000
Effective tax rateâ¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦.20%
(a) Prepare a 2010 retained earnings statement for McEntire Corporation.
(b) Assume McEntire Corp, restricted retained earnings in the amount of $70,000 on December 31, 2010. After this action, what would McEntire report as total remained earnings in its December 31, 2010, statement of financialposition?
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