Wando Company reported retained earnings at December 31 2016 of $410000. Wando had 160000 shares of common stock outstanding throughout 2017.
The following transactions occurred during 2017.
1. An error was discovered in the 2015 accounting records depreciation expense was recorded at $60000 but the correct amount was $50000.
2. A cash dividend of $0.50 per share was declared and paid.
3. A 5% stock dividend was declared and distributed when the market price per share was $15 per share.
4. Net income was $225000.
Instructions
Prepare a retained earnings statement for 2017.

Question

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The Answer of Wando Company reported retained earnings at December 31 2016 of $410000. Wando had 160000 shares of common stock outstanding throughout 2017.
The following transactions occurred during 2017.
1. An error was discovered in the 2015 accounting records depreciation expense was recorded at $60000 but the correct amount was $50000.
2. A cash dividend of $0.50 per share was declared and paid.
3. A 5% stock dividend was declared and distributed when the market price per share was $15 per share.
4. Net income was $225000.
Instructions
Prepare a retained earnings statement for 2017.

Wando Company Reported Retained Earnings at December 31 2016 of $410000