For Rockwell Inc. by June 30, 2016:
Starting retained earnings of $3,900,000 plus $714,000 net income totals $4,614,000. Deducting $150,000 dividends yields an ending retained earnings of $4,464,000.
To prepare the retained earnings statement for Rockwell Inc. for the fiscal year ended June 30, 2016,
Given information:
Retained earnings, July 1, 2015: $3,900,000
Net income for the year ended June 30, 2016: $714,000
Cash dividends declared: $100,000
Stock dividends declared: $50,000
Retained earnings statement calculation:
Starting Retained Earnings (July 1, 2015): $3,900,000
Add Net Income for the year ended June 30, 2016:
Net income = $714,000
Total earnings available = Starting Retained Earnings + Net Income
Total earnings available = $3,900,000 + $714,000 = $4,614,000
Subtract Dividends Declared (Cash Dividends + Stock Dividends):
Cash dividends = $100,000
Stock dividends = $50,000
Total dividends declared = Cash Dividends + Stock Dividends
Total dividends declared = $100,000 + $50,000 = $150,000
Retained Earnings, June 30, 2016 = Total earnings available - Total dividends declared
Retained Earnings, June 30, 2016 = $4,614,000 - $150,000 = $4,464,000
Therefore, the retained earnings for Rockwell Inc. for the fiscal year ended June 30, 2016, amount to $4,464,000.
complete the question
Rockwell Inc. reported the following results for the year ended June 30, 2016: Retained earnings, July 1, 2015 $3,900,000 Net income, 714,000 Cash dividends declared, 100,000 Stock dividends declared, 50,000 Prepare a retained earnings statement for the fiscal year ended June 30, 2016.
Rockwell Inc. reported the following results for the year ended June 30, 2016:
Retained earnings, July 1, 2015 $3,900,000
Net income, 714,000
Cash dividends declared, 100,000
Stock dividends declared, 50,000
Prepare a retained earnings statement for the fiscal year ended June 30, 2016. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers. The word “Less” is not required.