Create a Retained earnings statement from this given data: Create a Retained ear
ID: 2415007 • Letter: C
Question
Create a Retained earnings statement from this given data:
Create a Retained earnings statement from this given data:
Retained earnings and balance sheet data: Accounts payable $ 194,300 Accounts receivable 545,000 Accumulated depreciation—office buildings and equipment 1,580,000 Accumulated depreciation—store buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available-for-sale investments (at cost) 260,130 Bonds payable, 5%, due 2024 500,000 Cash 246,000 Common stock, $20 par (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory (December 31, 2016), at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over par: -Common 886,800 -Preferred 150,000 Preferred 5% stock, $80 par (30,000 shares authorized; 20,000 shares issued) 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of $33 per share) 178,200 Unrealized gain (loss) on available-for-sale investments (6,500) Valuation allowance for available-for-sale investments (6,500)Explanation / Answer
Balance Sheet Assets Particulars Amount $ Amount $ Current assets: Cash 246,000 Accounts receivable 545,000 Less: Allowance for doubtful accounts 8,450 536,550 Inventories: Merchandise inventory (December 31, 2016), at lower of cost (FIFO) or market 778,000 Prepaid expenses 27,400 Interest receivable 1,125 Store buildings and equipment 12,560,000 Less: Accumulated depreciation—store buildings and equipment 4,126,000 8,434,000 Office buildings and equipment 4,320,000 Less: Accumulated depreciation—office buildings and equipment 1,580,000 2,740,000 Goodwill 500,000 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Available-for-sale investments (at cost) 260,130 Total assets 14,622,505 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable 194,300 Bonds payable, 5%, due 2024 500,000 Income tax payable 44,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over par: -Common 886,800 -Preferred 150,000 Preferred 5% stock, $80 par (30,000 shares authorized; 20,000 shares issued) 1,600,000 Premium on bonds payable 19,000 Common stock, $20 par (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding) 2,000,000 Retained earnings 9,037,205 Treasury stock (5,400 shares of common stock at cost of $33 per share) 178,200 Total liabilities and Shareholders' equity 14,622,505 Retained Earnings Statement For the Year Ended 20XX Particulars Amount ($) Amount ($) Retained earnings, January 1, 2016 9,319,725 Add: Net Income -27,400 Less: Dividends -255,120 -282,520 Retained Earnings as on december 31 9,037,205