Question

Sumter Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended December 31, 20Y3:

Retained earnings, January 1, 20Y3 $64,083,000
Net income 7,373,000
Cash dividends declared 967,000
Stock dividends declared 2,783,000
Prepare a retained earnings statement for the year ended December 31, 20Y3. Refer to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted negative numbers use a minus sign

Answer 1

Step-by-step explanation:

The preparation of the retained earnings statement for the year ended December 31, 20Y3 is shown below:

Retained earnings, January 1, 20Y3 $64,083,000

Add: Net income $7,373,000

Less: Total dividend declared -$3,750,000

Retained earnings, December 31, 20Y3 $67,706,000

The total dividend declared would be

= Cash dividends declared + Stock dividends declared

= $967,000 + $2,783,000

= $3,750,000