For the year ended December 31, 2017, Transformers Inc. reported the following: Net Income $305068 Preferred...

For the year ended December 31, 2017, Transformers Inc. reported the following:

Net Income	$305068
Preferred dividends paid	54210
Common dividends paid	9619
Unrealized holding loss, net of tax	3543
Retained Earnings, beginning balance	389503
Common Stock	177628
Accumulated Other Comprehensive Income, beginning balance	22896

What would Transformers report as the ending balance of Retained Earnings?

Expert Solution

One can prepare Statement of Stockholder’s Equity to find the Ending Balance of Retained earnings.

	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income	Total Stockholder's Equity
Beginning Balance	$ 177,628.00	$ 389,503.00	$ 22,896.00	$ 590,027.00
Add: Net Income		$ 305,068.00	$ -	$ 305,068.00
Less: Dividends				$ -
Preferred Dividend		$ 54,210.00		$ 54,210.00
Common Dividend		$ 9,619.00		$ 9,619.00
Less: Unrealized Holding Loss			$ 3,543.00	$ 3,543.00
Ending Balance	$ 177,628.00	$ 630,742.00	$ 19,353.00	$ 827,723.00

Answer: Ending balance of Retained earnings = $ 630,742

ekkarill92 answered 1 year ago

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