Shamrock Corporation began operations on January 1, 2014. During its first 3 years of operations, Shamrock reported
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Shamrock Corporation began operations on January 1, 2014. During its first 3 years of operations, Shamrock reported net income and declared dividends as follows.
Net Income | declared dividends | |||||
2014 | $49,700 | $ –0– | ||||
2015 | 126,400 | 51,200 | ||||
2016 | 161,500 | 54,800 |
The following information refers to 2017.
Profit before income tax | $247,900 | ||
Prior period adjustment: 2015 depreciation expense understatement (before taxes) | $25,600 | ||
Cumulative decrease in income from change in inventory methods (before taxes) | $37,000 | ||
Declared dividends (of this amount, $25,600 will be paid on January 15, 2018) | $106,000 | ||
effective tax rate | 40 | % |
Prepare a 2017 statement of retained earnings for Shamrock Corporation. (List the items that increase adjusted retained earnings first.) Assume that Shamrock Corporation restricted retained earnings in the amount of $69,360 on December 31, 2017. Following this action, what would Shamrock report as total retained earnings on its balance sheet as of December 31, 2017? |
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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