Another topic this week is comprehensive income. Again, please review this week's lesson and attempt this exercise:

For the year ended December 31, 201X, Howdy Inc. reported the following. What would Howdy report as the ending balance of retained earnings? Show how the Stockholders' Equity section of the balance sheet should look like.
Net income	$30,000
Preferred dividends declared	$5,000
Common dividend declared	$1,000
Unrealized holding loss, net of tax	$500
Retained earnings, beginning balance	$40,000
Common stock	$20,000
Accumulated other comprehensive income, beginning balance	$3,000

Answer rating: 100% (QA)

To determine the ending balance of retained earnings for Howdy Inc for the year ended December 31 20... View the full answer