How to prepare a retained earnings statement


Bindra Company reported retained earnings at December 31, 2013, of $341,090. Bindra had 199,000 shares of common stock outstanding throughout 2014. The following transactions occurred during 2014.

1. An error was discovered: in 2012, depreciation expense was recorded at $73,500, but the correct amount was $52,650.

2. A cash dividend of $0.65 per share was declared and paid.

3. A 6% stock dividend was declared and distributed when the market price per share was $16 per share.

4. Net income was $288,900. Prepare a retained earnings statement for 2014. (List items that increase retained earnings first.)

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Accounting Basics: How to prepare a retained earnings statement
Reference No:- TGS0714245

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