On January 1, 2010, Vannon Corporation had Retained Earnings of $378,000. During the year, Vannon had the following selected transactions:
1. Declared stock dividends of $50,000.
2. Declared cash dividends of $90,000.
3. A 2 for 1 stock split involving the issuance of 200,000 shares of $5 par value common stock for 100,000 shares of $10 par value common stock.
4. Suffered a net loss of $70,000.
5. Corrected understatement of 2009 net income because of an inventory error of $48,000.
Instructions
Prepare a retained earnings statement for the year.

Question

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The Answer of On January 1, 2010, Vannon Corporation had Retained Earnings of $378,000. During the year, Vannon had the following selected transactions:
1. Declared stock dividends of $50,000.
2. Declared cash dividends of $90,000.
3. A 2 for 1 stock split involving the issuance of 200,000 shares of $5 par value common stock for 100,000 shares of $10 par value common stock.
4. Suffered a net loss of $70,000.
5. Corrected understatement of 2009 net income because of an inventory error of $48,000.
Instructions
Prepare a retained earnings statement for the year.

On January 1, 2010, Vannon Corporation Had Retained Earnings of $378,000