The statement of retained earnings of Gary Larson Publishers is presented below. GARY LARSON PUBLISHERSStatement of Retained EarningsFor the Year Ended December 31, 2016($ in millions)Retained earnings, January 1 $200Add: Net income 75Deduct: Cash dividend (25)Stock dividend (1 million shares of $1 par common stock) (16)Property dividend (Garfield Company preferred stock heldas a short-term investment) (12)Sale of treasury stock (cost $53 million) (10)Retained earnings, December 31 $212 Required: For the transactions that affected Larson’s retained earnings, reconstruct the journal entries for the transactions that affected retained earnings and that can be used to determine cash flows to be reported in a statement of cash flows. Also indicate any investing and financing activities you identify from this analysis that should be reported on the statement of cash flows.

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 19E: Lyon Company shows the following condensed income statement information for the year ended December...
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The statement of retained earnings of Gary Larson Publishers is presented below. GARY LARSON PUBLISHERS
Statement of Retained Earnings
For the Year Ended December 31, 2016
($ in millions)
Retained earnings, January 1 $200
Add: Net income 75
Deduct: Cash dividend (25)
Stock dividend (1 million shares of $1 par common stock) (16)
Property dividend (Garfield Company preferred stock held
as a short-term investment) (12)
Sale of treasury stock (cost $53 million) (10)
Retained earnings, December 31 $212 Required:
For the transactions that affected Larson’s retained earnings, reconstruct the journal entries for the transactions
that affected retained earnings and that can be used to determine cash flows to be reported in a statement of cash
flows. Also indicate any investing and financing activities you identify from this analysis that should be reported
on the statement of cash flows.

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