Honey Mill Cameras Inc. reported the following results for the year ending October 31, 20Y9: Retained earnings, November 1, 20Y8 $1,787,500 Net income 643,500 Cash dividends declared 76,000 Stock dividends declared 195,000 Prepare a retained earnings statement for the fiscal year ended October 31, 20Y9. Honey Mill Cameras Inc. Retained Earnings Statement For the Year Ended October 31, 20Y9 Retained Earnings, November 1, 20Y8 V $ 1,787,500 Net Income 643,500 Dividends Declared 76,000 X Increase in Retained Earnings 372,500 Retained Earnings, October 31, 20Y9 1,415,000 X
Honey Mill Cameras Inc. reported the following results for the year ending October 31, 20Y9: Retained earnings, November 1, 20Y8 $1,787,500 Net income 643,500 Cash dividends declared 76,000 Stock dividends declared 195,000 Prepare a retained earnings statement for the fiscal year ended October 31, 20Y9. Honey Mill Cameras Inc. Retained Earnings Statement For the Year Ended October 31, 20Y9 Retained Earnings, November 1, 20Y8 V $ 1,787,500 Net Income 643,500 Dividends Declared 76,000 X Increase in Retained Earnings 372,500 Retained Earnings, October 31, 20Y9 1,415,000 X
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 9E
Related questions
Question
I don't know how to correct the problem that I got wrong
![### Retained Earnings Statement
**Honey Mill Cameras Inc.** reported the following results for the year ending October 31, 20Y9:
- **Retained earnings, November 1, 20Y8:** $1,787,500
- **Net income:** $643,500
- **Cash dividends declared:** $76,000
- **Stock dividends declared:** $195,000
**Prepare a retained earnings statement for the fiscal year ended October 31, 20Y9.**
**Honey Mill Cameras Inc.**
**Retained Earnings Statement**
**For the Year Ended October 31, 20Y9**
| Item | Amount ($) |
|------------------------------------|--------------|
| Retained Earnings, November 1, 20Y8| $1,787,500 ✓ |
| Net Income | $643,500 ✓ |
| Dividends Declared | $76,000 ✕ |
| Increase in Retained Earnings | $372,500 ✓ |
| Retained Earnings, October 31, 20Y9| $1,415,000 ✕ |
#### Explanation of Graphs and Diagrams:
The image contains a retained earnings statement with annotations to validate or invalidate certain amounts.
1. **Initial Retained Earnings:** The statement begins with the retained earnings of $1,787,500 as of November 1, 20Y8, which is marked correct.
2. **Net Income:** Net income for the year ending on October 31, 20Y9 is correctly stated as $643,500.
3. **Dividends Declared:** The figure $76,000 for cash dividends declared is marked as incorrect, likely because it does not account for other types of dividends or has been miscalculated.
4. **Increase in Retained Earnings:** This is correctly marked as $372,500, based on the valid net income and presumably the correct total of dividends declared.
5. **Final Retained Earnings:** The retained earnings as of October 31, 20Y9, is erroneously stated as $1,415,000, as indicated by the cross mark. This is based on incorrect dividend calculation.
The graphical representation with check marks (✓) and cross marks (✕) helps visually identify which figures are accurate and which need correction.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3ab2835-e63c-462d-897e-c9721400fd30%2Fbc685dcb-1679-42f0-b321-00ccfa04772d%2F6hm641l.png&w=3840&q=75)
Transcribed Image Text:### Retained Earnings Statement
**Honey Mill Cameras Inc.** reported the following results for the year ending October 31, 20Y9:
- **Retained earnings, November 1, 20Y8:** $1,787,500
- **Net income:** $643,500
- **Cash dividends declared:** $76,000
- **Stock dividends declared:** $195,000
**Prepare a retained earnings statement for the fiscal year ended October 31, 20Y9.**
**Honey Mill Cameras Inc.**
**Retained Earnings Statement**
**For the Year Ended October 31, 20Y9**
| Item | Amount ($) |
|------------------------------------|--------------|
| Retained Earnings, November 1, 20Y8| $1,787,500 ✓ |
| Net Income | $643,500 ✓ |
| Dividends Declared | $76,000 ✕ |
| Increase in Retained Earnings | $372,500 ✓ |
| Retained Earnings, October 31, 20Y9| $1,415,000 ✕ |
#### Explanation of Graphs and Diagrams:
The image contains a retained earnings statement with annotations to validate or invalidate certain amounts.
1. **Initial Retained Earnings:** The statement begins with the retained earnings of $1,787,500 as of November 1, 20Y8, which is marked correct.
2. **Net Income:** Net income for the year ending on October 31, 20Y9 is correctly stated as $643,500.
3. **Dividends Declared:** The figure $76,000 for cash dividends declared is marked as incorrect, likely because it does not account for other types of dividends or has been miscalculated.
4. **Increase in Retained Earnings:** This is correctly marked as $372,500, based on the valid net income and presumably the correct total of dividends declared.
5. **Final Retained Earnings:** The retained earnings as of October 31, 20Y9, is erroneously stated as $1,415,000, as indicated by the cross mark. This is based on incorrect dividend calculation.
The graphical representation with check marks (✓) and cross marks (✕) helps visually identify which figures are accurate and which need correction.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Financial Accounting: The Impact on Decision Make…](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Financial Accounting: The Impact on Decision Make…](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Accounting (Text Only)](https://www.bartleby.com/isbn_cover_images/9781285743615/9781285743615_smallCoverImage.gif)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning