You are the accountant for Kamal Fabricating, Inc. and you oversee the preparation of financial statements for the year just ended 6/30/2020. You have the following information from the company’s general ledger and other financial reports (all balances are end-of-year except for those noted otherwise):Cash$11,000 Common stock8,000 Accounts receivable7,000 Accounts payable2,000 Cash dividends declared for the year2,000 Additional paid-in capital5,000 Prepaid insurance5,000 Prior period adjustment, net of income taxes(2,000)Unearned revenue4,000 Retained earnings, beginning of the year7,000 Net income for the year9,000 Prepare the company’s Statement of Retained Earnings.Kamal Fabricating, Inc.Statement of Retained EarningsYear Ended June 30, 2020 $Retained earnings, July 1, 2019 Prior period adjustment, net of income taxes $Adjusted retained earnings, July 1, 2019 Net income $fill in the blank 9 Cash dividends declared $Retained earnings, June 30, 2020

STATEMENT OF RETAINED EARNINGS Statement of Retained Earnings shows the financial health of the…

Answered: You are the accountant for Kamal…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 12PA: You are the accountant for Kamal Fabricating, Inc. and you oversee the preparation of financial...

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You are the accountant for Kamal Fabricating, Inc. and you oversee the preparation of financial statements for the year just ended 6/30/2020. You have the following information from the company’s general ledger and other financial reports (all balances are end-of-year except for those noted otherwise):

Cash	$11,000
Common stock	8,000
Accounts receivable	7,000
Accounts payable	2,000
Cash dividends declared for the year	2,000
Additional paid-in capital	5,000
Prepaid insurance	5,000
Prior period adjustment, net of income taxes	(2,000)
Unearned revenue	4,000
Retained earnings, beginning of the year	7,000
Net income for the year	9,000

Prepare the company’s Statement of Retained Earnings.

Kamal Fabricating, Inc.Statement of Retained EarningsYear Ended June 30, 2020

	$Retained earnings, July 1, 2019
	Prior period adjustment, net of income taxes
	$Adjusted retained earnings, July 1, 2019
	Net income
	$fill in the blank 9
	Cash dividends declared
	$Retained earnings, June 30, 2020

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