Retained Earnings Statement Rolt Company began 2019 with a $135,000 balance in retained earnings. During the year, the following events occurred: The company earned net income of $74,000. A material error in net income from a previous period was corrected. This error correction increased retained earnings by $9,800 after related income taxes of $4,200. Cash dividends totaling $11,500 and stock dividends totaling $16,000 were declared. One thousand shares of callable preferred stock that originally had been issued at $115 per share were recalled and retired at the beginning of 2019 for the call price of $125 per share. Treasury stock (common) was acquired at a cost of $25,000. State law requires a restriction of retained earnings in an equal amount. The company reports its retained earnings restrictions in a note to the financial statements. Required: Prepare a statement of retained earnings for the year ended December 31, 2019. ROLT COMPANY Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, as previously reported, January 1, 2019 $fill in the blank 1 fill in the blank 3 Adjusted retained earnings, January 1, 2019 $fill in the blank 4 fill in the blank 6 $fill in the blank 7 $fill in the blank 9 fill in the blank 11 fill in the blank 13 fill in the blank 14 Retained earnings, December 31, 2019 $fill in the blank 15

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 22P: Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income...

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Retained Earnings Statement

Rolt Company began 2019 with a $135,000 balance in retained earnings. During the year, the following events occurred:

The company earned net income of $74,000.
A material error in net income from a previous period was corrected. This error correction increased retained earnings by $9,800 after related income taxes of $4,200.
Cash dividends totaling $11,500 and stock dividends totaling $16,000 were declared.
One thousand shares of callable preferred stock that originally had been issued at $115 per share were recalled and retired at the beginning of 2019 for the call price of $125 per share.
Treasury stock (common) was acquired at a cost of $25,000. State law requires a restriction of retained earnings in an equal amount. The company reports its retained earnings restrictions in a note to the financial statements.

Required:

Prepare a statement of retained earnings for the year ended December 31, 2019.

ROLT COMPANY
Statement of Retained Earnings
For Year Ended December 31, 2019
Retained earnings, as previously reported, January 1, 2019		$fill in the blank 1
		fill in the blank 3
Adjusted retained earnings, January 1, 2019		$fill in the blank 4
		fill in the blank 6
		$fill in the blank 7
	$fill in the blank 9
	fill in the blank 11
	fill in the blank 13	fill in the blank 14
Retained earnings, December 31, 2019		$fill in the blank 15

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