On January 1, 2014, Eddy Corporation had retained earnings of $650,000. During the year, Eddy had the

Question:

On January 1, 2014, Eddy Corporation had retained earnings of $650,000. During the year, Eddy had the following selected transactions.

1. Declared cash dividends $120,000.

2. Corrected overstatement of 2013 net income because of depreciation error $40,000.

3. Earned net income $350,000.

4. Declared stock dividends $90,000.

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...