Sakarya Company reported retained earnings at December 31, 2010, of TL310,000. Sakarya had 200,000 ordinary shares outstanding

Question:

Sakarya Company reported retained earnings at December 31, 2010, of TL310,000. Sakarya had 200,000 ordinary shares outstanding throughout 2011.
The following transactions occurred during 2011.
1. An error was discovered: in 2009, depreciation expense was recorded at TL70,000, but the correct amount was TL50,000.
2. A cash of TL0.50 per share was declared and paid.
3. A 5% share was declared and distributed when the market price per share was TL15 per share.
4. Net income was TL285,000.

Instructions
Prepare a retained earnings statement for 2011.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...