E3.12 (LO 3) Excel (Retained Earnings Statement) Eddie Zambrano Corporation began operations on January 1, 2022. During its first 3 years of operations, Zambrannet income and declared dividends as follows.The following information relates to 2025.202220232024Net Income Dividends Declared$ 40,000125,000160,000$-0-50,00050,000Income before income taxPrior period adjustment: understatement of 2023 depreciation expense (before taxes)Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2026)Effective tax rateInstructionsa. Prepare a 2025 retained earnings statement for Eddie Zambrano Corporation.$240,00025,000100,00020%3rted

Retained earnings refer to the sum value of money retained at a company after it has paid the…

2023 2024 125,000 160,000 50,000 50,000 e before income tax period adjustment: understatement of 2023 depreciation expense (before taxe: nde declared (of this amount $25.000 will be paid on Jan 15 2026)

2023 2024 125,000 160,000 50,000 50,000 e before income tax period adjustment: understatement of 2023 depreciation expense (before taxe: nde declared (of this amount $25.000 will be paid on Jan 15 2026)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

E3.12 (LO 3) Excel (Retained Earnings Statement) Eddie Zambrano Corporation began operations on January 1, 2022. During its first 3 years of operations, Zambran
net income and declared dividends as follows.
The following information relates to 2025.
2022
2023
2024
Net Income Dividends Declared
$ 40,000
125,000
160,000
$-0-
50,000
50,000
Income before income tax
Prior period adjustment: understatement of 2023 depreciation expense (before taxes)
Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2026)
Effective tax rate
Instructions
a. Prepare a 2025 retained earnings statement for Eddie Zambrano Corporation.
$240,000
25,000
100,000
20%
3
rted

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