The balance in retained earnings on January 1, 2010, for Blakely Inc., was $600,000. During the year, the corporation paid cash dividends of $70,000 and distributed a stock dividend of $15,000. In addition, the company determined that it had overstated its depreciation expense in prior years by $50,000. Net income for 2010 was $120,000.
Instructions
Prepare the retained earnings statement for 2010.

Question

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The Answer of The balance in retained earnings on January 1, 2010, for Blakely Inc., was $600,000. During the year, the corporation paid cash dividends of $70,000 and distributed a stock dividend of $15,000. In addition, the company determined that it had overstated its depreciation expense in prior years by $50,000. Net income for 2010 was $120,000.
Instructions
Prepare the retained earnings statement for 2010.

The Balance in Retained Earnings on January 1, 2010, for Blakely