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Swiger Music Company had the following information related to its financial statements:
1) The company issued bonds in the amount of $50,000.
2) The company earned net income of $78,900 and declared a cash dividend of $0.25 per share. Currently there are 50,000 shares outstanding.
3) Retained earnings at January 1, 2016 was $82,000.
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Required:
Prepare the reconciliation of retained earnings for December 31, 2016.
What will be an ideal response?
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| SWIGER MUSIC COMPANYReconciliation of Retained EarningsFor Year Ended December 31, 2016 | |
| Retained Earnings, January 1, 2016 | 82,000 |
| Add: Net income | 78,900 |
| $160,900 | |
| Less: Cash dividends declared, $0.25 per share | (12,500) |
| Retained earnings, December 31, 2016 | $ 148,400 |
Business
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