For the year ended December 31, 2017, Transformers Inc. reportedthe following:Net Income$305068Preferred...For the year...

Free

70.2K

Verified Solution

Question

Accounting

For the year ended December 31, 2017, Transformers Inc. reportedthe following:
Net Income $305068
Preferred dividends paid 54210
Common dividends paid 9619
Unrealized holding loss, net oftax 3543
Retained Earnings, beginningbalance 389503
Common Stock 177628
Accumulated Other Comprehensive Income,beginning balance 22896
What would Transformers report as the ending balance of RetainedEarnings?

Answer & Explanation Solved by verified expert

4.4 Ratings (823 Votes)

One can prepare Statement of Stockholder’s Equity to find the Ending Balance of Retained earnings.

	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income	Total Stockholder's Equity
Beginning Balance	$ 177,628.00	$ 389,503.00	$ 22,896.00	$ 590,027.00
Add: Net Income		$ 305,068.00	$ -	$ 305,068.00
Less: Dividends				$ -
Preferred Dividend		$ 54,210.00		$ 54,210.00
Common Dividend		$ 9,619.00		$ 9,619.00
Less: Unrealized Holding Loss			$ 3,543.00	$ 3,543.00
Ending Balance	$ 177,628.00	$ 630,742.00	$ 19,353.00	$ 827,723.00

Answer: Ending balance of Retained earnings = $ 630,742

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingFor the year ended December 31, 2017, Transformers Inc. reportedthe following:Net Income$305068Preferred...For the year ended December 31, 2017, Transformers Inc. reportedthe following:Net Income$305068Preferred dividends paid54210Common dividends paid9619Unrealized holding loss, net oftax3543Retained Earnings, beginningbalance389503Common Stock177628Accumulated Other Comprehensive Income,beginning balance22896What would Transformers report as the ending balance of RetainedEarnings?

Net Income	$305068
Preferred dividends paid	54210
Common dividends paid	9619
Unrealized holding loss, net oftax	3543
Retained Earnings, beginningbalance	389503
Common Stock	177628
Accumulated Other Comprehensive Income,beginning balance	22896