Question: Newland Company reported retained earnings at December 31 2016 of

Newland Company reported retained earnings at December 31, 2016, of $310,000.
Newland had 200,000 shares of common stock outstanding at the beginning of 2017.
The following transactions occurred during 2017.
1. An error was discovered. In 2015, depreciation expense was recorded at $70,000, but the correct amount was $50,000.
2. A cash dividend of $0.50 per share was declared and paid.
3. A 5% stock dividend was declared and distributed when the market price per share was $15 per share.
4. Net income was $285,000.

Instructions
Prepare a retained earnings statement for 2017.


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  • CreatedMarch 02, 2015
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