Landon Corporation was organized on January 2, 2006, with the investment of $100,000 by each of its two stockholders. Net income for its first year of business was $85,200. Net income increased during 2007 to $125,320 and to $145,480 during 2008. Landon paid $20,000 in dividends to each of the two stockholders in each of the three years.
Prepare a statement of retained earnings for the year ending December 31, 2008.© BrainMass Inc. brainmass.com June 3, 2020, 10:13 pm ad1c9bdddf
I order to make the statement of retained earnings for year ending Dec 31, 2008, we need to first calculate the opening retained earnings.
The opening retained earnings are cumulative retained earnings until Dec 31, 2007.
The solution explains how to prepare a statement of retained earnings.