On January 1, 2017, Eddy Corporation had retained earnings of $650,000. During the year, Eddy had the

Question:

On January 1, 2017, Eddy 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 2016 net income because of inventory 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...