On January 1, 2014, Richard Corporation had retained earnings of $550,000. During the year, Richard had the

Question:

On January 1, 2014, Richard Corporation had retained earnings of $550,000. During the year, Richard had the following selected transactions.

1. Declared cash dividends $96,000.

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

3. Earned net income $350,000.

4. Declared stock dividends $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...