Question

Willow Wanderer Cameras Inc. reported the following results for the year ending October 31, 20Y9: Retained earnings, November 1, 20Y8 $2,269,000 Net income 680,700 Cash dividends declared 50,000 Stock dividends declared 127,000

Prepare a retained earnings statement for the fiscal year ended October 31, 20Y9.

Answer 1

The statement would be:

Date: October 31, 2019

Net Income $680,700

Cash dividends $50,000

Stock dividends $127,000

Retained earnings $503,700

The retained earnings are equal to the sum of declared dividends substracted from the net income.