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View Policies Current Attempt in Progress The following information was extracted from the accounts of Sand CR(DR) Total reported income since incorporation $ 48100C Totalcach dividends naid

View Policies Current Attempt in Progress The following information was extracted from the accounts of Sand CR(DR) Total reported income since incorporation $ 48100C Totalcach dividends naid

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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View Policies Current Attempt in Progress The following information was extracted from the accounts of Sandhill Co. at December 31, 2020: CR(DR). Total reported income since incorporation $4810000 Total cash dividends paid (2480000) Unrealized holding loss on available-for-sale securities (368000) Total stock dividends distributed (604000) Prior period adjustment, recorded January 1, 2020 226000 What should be the balance of retained earnings at December 31, 2020? O $1876000. O $ 1584000. O $ 1952000. O $ 3042800. Save for Later Attempts: 0 of 1 used Submit Answ
Transcribed Image Text:View Policies Current Attempt in Progress The following information was extracted from the accounts of Sandhill Co. at December 31, 2020: CR(DR). Total reported income since incorporation $4810000 Total cash dividends paid (2480000) Unrealized holding loss on available-for-sale securities (368000) Total stock dividends distributed (604000) Prior period adjustment, recorded January 1, 2020 226000 What should be the balance of retained earnings at December 31, 2020? O $1876000. O $ 1584000. O $ 1952000. O $ 3042800. Save for Later Attempts: 0 of 1 used Submit Answ
Expert Solution
Step 1

Format of Calculation of Retained Earnings

Particulars $
Total Reported Income since Inception xxx
Add: Prior Period Adjustment xxx
Less: Stock Dividend (xxx)
Less: Cash Dividend paid (xxx)
Balance in retained earnings  

Note: Unrealised holding loss on available-for-securities does not effect the retained earnings, since it is a part of shareholders' equity

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