The balance in retained earnings on January 1, 2020, for Palmer Cosmetic was 800,000. During the year,

Question:

The balance in retained earnings on January 1, 2020, for Palmer Cosmetic was €800,000. During the year, the company paid cash dividends of €90,000 and distributed a share dividend of €8,000. In addition, the company determined that it had understated its insurance expense in prior years by €35,000. Net income for 2020 was €120,000. Prepare the retained earnings statement for 2020.

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...

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