On January 1, 2011, Castle Corporation had retained earnings of $550,000. During the year, Castle had the

Question:

On January 1, 2011, Castle had retained earnings of $550,000. During the year, Castle had the following selected transactions.
1. Declared cash dividends of $120,000.
2. Corrected overstatement of 2010 net income because of depreciation error $30,000.
3. Earned net income of $350,000.
4. Declared stock dividends of $80,000.

Instructions
Prepare a retained earnings statement for the year.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...