The statement of retained earnings of Gary Larson Publishers is presented below. GARY LARSON PUBLISHERS Statement of
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Question:
The statement of retained earnings of Gary Larson Publishers is presented below.
GARY LARSON PUBLISHERS Statement of Retained Earnings For the Year Ended December 31, 2018 ($ in millions) | ||||
Retained earnings, January 1 | $ | 225 | ||
Add: | Net income | 81 | ||
Deduct: | Cash dividend | (18 | ) | |
Stock dividend (1 million shares of $1 par common stock) | (10 | ) | ||
Property dividend (Garfield Company preferred stock held as a short-term investment) | (14 | ) | ||
Sale of treasury stock (cost $56 million) | (13 | ) | ||
Retained earnings, December 31 | $ | 251 | ||
Required:
For the transactions that affected Larson’s retained earnings, reconstruct the journal entries for the transactions that affected retained earnings and that can be used to determine cash flows to be reported in a statement of cash flows.
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
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