Question: Accounting question Intro level: stock, dividends and retained earnings?
I have a question on how to do this question.
On January 1, 2008, Castle Corporation had retained earnings of $550,000. During the year, Castle had the following selected transactions
Declared cash dividends $120,000.
Corrected overstatement of 2007 net income because of depreciation error $30,000.
Earned net income $350,000.
Declared stock dividends $80,000.
Complete the retained earnings statement for the year
Thank you for any help you may give.
Answer:
Retained earnings at end of 2008: $550,000 - 120,000 - 30,000 + 350,000 = $750,000.