1. Blacktea Company had a net income of $102,000 for the year ended December 31, 2018. On December 15, Blacktea announced an annual cash dividend (face value, $100,000) on its 22% preferred stock and a 1.00 cash dividend per share for common stock left-bracket 45 com 000 (45,000 shares). Blacktea later paid dividends on January 4, 2019.

Read the requirements

1.	keep a diary for Blacktea entry declaring cash dividend on December 15, 2018.
2.	keep a diary for Blacktea's entry paying cash dividends on January 4, 2019.

2. Betty May Bakery, Inc. reported a prior period arrangement in 2018. An accounting error caused prior years' net income to be over $5,000. Net income for 2018 was $75,000 and dividends declared $20,000. 

Prepare the company's statement of retained earnings for the year ended December 31, 2018. Enter any current period increase in retained earnings before the subtotal and enter the current period increases below the subtotal to the retained earnings for the period.

Answer rating: 100% (QA)

SOLUTION 1 Diary entries for Blacktea Company December 15 2018 Retained Earnin... View the full answer