Wando Company reported retained earnings at December 31, 2019, of $410,000. Wando had 160,000 shares of...

 

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Wando Company reported retained earnings at December 31, 2019, of $410,000. Wando had 160,000 shares of common stock outstanding throughout 2020. The following transactions occurred during 2020. 1. An error was discovered in the 2018 accounting records, depreciation expense was recorded at $60,000, but the correct amount was $50,000. 2. A cash dividend of $0.50 per share was declared and paid. 3. A 5% stock dividend was declared and distributed when the market price per share was $15 per share. 4. Net income was $225,000. Instructions Prepare a retained earnings statement for 2020. Wando Company reported retained earnings at December 31, 2019, of $410,000. Wando had 160,000 shares of common stock outstanding throughout 2020. The following transactions occurred during 2020. 1. An error was discovered in the 2018 accounting records, depreciation expense was recorded at $60,000, but the correct amount was $50,000. 2. A cash dividend of $0.50 per share was declared and paid. 3. A 5% stock dividend was declared and distributed when the market price per share was $15 per share. 4. Net income was $225,000. Instructions Prepare a retained earnings statement for 2020.

Answer rating: 100% (QA)

The Balance of retained earnings on December 21 2020 is 445000 as calculated below WAN DO COMPA... View the full answer