Retained EarningsTigress Manufacturing had beginning retained earnings of $650,000. During the year, Tigress paid cash dividends of $70,000 to preferred stockholders and $55,000 to common stockholders. Net income for the year was $340,000.Required:1. Reproduce the Retained Earnings T-account for the year starting with the beginning balance.Retained Earnings Beginning balancefill in the blank e10d4df99074f8a_1Preferred dividendsfill in the blank e10d4df99074f8a_2 Common dividendsfill in the blank e10d4df99074f8a_3 Net incomefill in the blank e10d4df99074f8a_4 Ending balancefill in the blank e10d4df99074f8a_52. Determine what Tigress's ending retained earnings is assuming that during the year it discovers that net income was overstated by $13,000 in prior years due to an error. The error was corrected and the current year's net income is correct.Ending Retained Earnings $fill

1. Retained Earnings Beginning balance $650,000 Preferred dividends $70,000 Common…

Answered: Tigress Manufacturing had beginning…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Retained Earnings

Tigress Manufacturing had beginning retained earnings of $650,000. During the year, Tigress paid cash dividends of $70,000 to preferred stockholders and $55,000 to common stockholders. Net income for the year was $340,000.

Required:

1. Reproduce the Retained Earnings T-account for the year starting with the beginning balance.

Retained Earnings
		Beginning balance	fill in the blank e10d4df99074f8a_1
Preferred dividends	fill in the blank e10d4df99074f8a_2
Common dividends	fill in the blank e10d4df99074f8a_3
		Net income	fill in the blank e10d4df99074f8a_4
		Ending balance	fill in the blank e10d4df99074f8a_5

2. Determine what Tigress's ending retained earnings is assuming that during the year it discovers that net income was overstated by $13,000 in prior years due to an error. The error was corrected and the current year's net income is correct.

Ending Retained Earnings $fill

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