At the beginning of 2013, Cameron Company's retained earnings was $212,000. For 2013, Cameron has calculated its

Question:

At the beginning of 2013, Cameron Company's retained earnings was $212,000. For 2013, Cameron has calculated its pretax income from continuing operations to be $120,000.
During 2013, the following events also occurred:
1. During July, Cameron sold Division M (a component of the company). It has determined that the pretax income from the operations of Division M during 2013 totals $39,000 and that a pretax loss of $40,500 was incurred on the sale of Division M.
2. Cameron had 21,000 shares of outstanding during all of 2013. It declared and paid a $1 per share cash on this stock.
3. Cameron experienced an extraordinary event. It recognized a material pretax gain of $26,000 on the event.
Required:
Assuming that all the ''pretax'' items are subject to a 30% income tax rate:
1. Complete the lower portion of Cameron's 2013 income statement, beginning with ''Pretax Income from Continuing Operations.''
2. Prepare an accompanying retained earnings statement.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...