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a. Prepare a statement of stockholders' equity for KickJoe Co. for the year ended December 31, 2020. b. Prepare a separate statement of retained earnings for the year ended December 31, 2020.

a. Prepare a statement of stockholders' equity for KickJoe Co. for the year ended December 31, 2020. b. Prepare a separate statement of retained earnings for the year ended December 31, 2020.

FINANCIAL ACCOUNTING
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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i have completed this in excel but would like to compare my answers

6. In 2019, the first year of operations for KickJoe Co., the company reported net income of $18,000 and declared and paid dividends of $5,600. No other items affected retained earnings in 2019. On December 31, 2019, the company had the following balances in stockholders' equity accounts (other than retained earnings): common stock, $40,000 credit balance; accumulated other comprehensive income, $2,000 debit balance. During 2020, the company reported net income of $35,200, declared and paid dividends of $8,000, and reported a foreign currency translation gain of $3,400 (after tax). Also in 2020, the company discovered that its 2019 depreciation expense was understated by $4,000 before taxes and the amount is material to the- company. Assume a tax rate of 25%. Yool75) Required a. Prepare a statement of stockholders' equity for KickJoe Co. for the year ended December 31, 2020. b. Prepare a separate statement of retained earnings for the year ended December 31, 2020.
Transcribed Image Text:6. In 2019, the first year of operations for KickJoe Co., the company reported net income of $18,000 and declared and paid dividends of $5,600. No other items affected retained earnings in 2019. On December 31, 2019, the company had the following balances in stockholders' equity accounts (other than retained earnings): common stock, $40,000 credit balance; accumulated other comprehensive income, $2,000 debit balance. During 2020, the company reported net income of $35,200, declared and paid dividends of $8,000, and reported a foreign currency translation gain of $3,400 (after tax). Also in 2020, the company discovered that its 2019 depreciation expense was understated by $4,000 before taxes and the amount is material to the- company. Assume a tax rate of 25%. Yool75) Required a. Prepare a statement of stockholders' equity for KickJoe Co. for the year ended December 31, 2020. b. Prepare a separate statement of retained earnings for the year ended December 31, 2020.
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