On January 1 2017 Lundy Corporation Had Retained Earnings of $400000

question 123

Essay

On January 1 2017 Lundy Corporation had Retained Earnings of $400000. During the year Lundy had the following selected transactions:
1. Declared stock dividends of $50000.
2. Declared cash dividends of $90000.
3. A 2 for 1 stock split involving the issuance of 200000 shares of $5 par value common stock for 100000 shares of $10 par value common stock.
4. Suffered a net loss of $70000.
5. Corrected understatement of 2016 net income because of an inventory error of $48000.
Instructions
Prepare a retained earnings statement for the year.