Final answer:
To prepare the statement of retained earnings for Tidal Company, start with the Retained Earnings at December 31, prior year. Add the Net Income in the current year and subtract the Cash Dividends declared and paid in the current year to get the final figure for Retained Earnings at December 31 of the current year.
Step-by-step explanation:
To prepare a statement of retained earnings for Tidal Company, we start with the Retained Earnings at December 31, prior year, which is given as $63,600. Then, we add the Net Income in the current year, which is $36,600. This gives us a subtotal of $100,200. Next, we deduct the Cash Dividends declared and paid in the current year, which are $9,800. Subtracting this amount from the subtotal, we get the final figure for Retained Earnings at December 31 of the current year, which is $90,400.
The statement of retained earnings for Tidal Company for the current year ended December 31 is as follows: Retained Earnings at December 31, prior year: $63,600 Add: Net Income in current year: $36,600 Subtotal: $100,200 Less: Cash Dividends declared and paid in current year: $9,800 Retained Earnings at December 31 of the current year: $90,400