4e-11 - Amount Title Amount Title Amount Title Formula Add...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Exercise 4-11, Page 1 of 1, 02/24/2010, 07:30:38 Name: Exercise: E4-11, Retained Earnings Statement (20-25 minutes) Course: Date: Year Net income Dividends declared 2007 $40,000 $0 2008 125,000 50,000 2009 160,000 50,000 The following information relates to 2010: Income before income taxes $220,000 Prior period adjustment: Understatement of 2008 depreciation expense. (Before taxes) $25,000 Cumulative decrease in income from change in inventory methods (before taxes) $45,000 Dividends declared $100,000 Of the dividends declared to date, the amount that will be paid on Jan 15, 2011 is: $25,000 Effective tax rate 40% Instructions: McENTIRE CORPORATION Retained Earnings Statement For the Year Ended December 31, 2010 Balance, January 1, as reported
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Amount Title Amount Title Amount Title Formula Add: Net income Amount Formula Title Amount Title Formula $70,000 Enter text answer here. Retained earnings Appropriated Amount Unappropriated Amount Total Amount McEntire Corporation began operations on January 1, 2007. During its first 3 years of operations, McEntire reported net income and declared dividends as follows. (a) Prepare a 2010 retained earnings statement for McEntire Corporation. (b) Assume McEntire Corp. restricted retained earnings in the amount of on December 31, 2010. After this action, what would McEntire report as total retained earnings in its December 31, 2010, balance sheet?...
View Full Document

This note was uploaded on 02/24/2010 for the course ACCT 4397 taught by Professor Staff during the Spring '08 term at University of Houston.

Ask a homework question - tutors are online