The balance in retained earnings on January 1 2017 for Hotel Plaza Inc. was $575000. During the year the corporation paid cash dividends of $70000 and distributed a stock dividend of $15000. In addition the company determined that it had overstated its depreciation expense in prior years by $50000. Net income for 2017 was $120000.
Instructions
Prepare the retained earnings statement for 2017.

Question

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The Answer of The balance in retained earnings on January 1 2017 for Hotel Plaza Inc. was $575000. During the year the corporation paid cash dividends of $70000 and distributed a stock dividend of $15000. In addition the company determined that it had overstated its depreciation expense in prior years by $50000. Net income for 2017 was $120000.
Instructions
Prepare the retained earnings statement for 2017.

The Balance in Retained Earnings on January 1 2017 for Hotel