The balance in retained earnings on January 1, 2012, for Thomas Inc, was $800,000. During the year,

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The balance in retained earnings on January 1, 2012, for Thomas Inc, was $800,000. During the year, the corporation paid cash dividends of $90,000 and distributed a stock dividend of $8,000. In addition, the company determined that it had understated its depreciation expense in prior years by $50,000. Net income for 2012 was $120,000. Prepare the retained earnings statement for 2012.

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Accounting Principles

ISBN: 978-0470534793

10th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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