Just need help calculating Retained Earnings, thank you. You\'ve been hired to p

Question

Just need help calculating Retained Earnings, thank you.

You've been hired to perfcrm an audit of Hubbard Company for the year ended December 31, 2013. You find the fcllowing account balances related to shareholders' equity: Preferred stock, siuo par Common stock, $10 par Capital surplus Retained camings Because of the antiquated teminology and negative balance, you examine the Capital Surplus account first and find in it the following entries: 179,a00 Credit Additional paid-in capital on common stock Capital from donated land Treasury stock (400 cammon shares at coct) Additional paid-in capital on preferred stock Stock dividend (50%) Prior period adjustment (net of income taxes) Lass from fire (uninsurec), 2012 Property dividend dedared Cash ciidends declared Balance 14,000 6,000 -1,650 28,600 Your examination of the Preferred Stock and Common Stock accounts reveals thot the amounts shown comectly stae the total par value af the issued capital stock. The Retained Eamings account contains the accumulated carnings of the company, wth the exception o any items of retained earnings that were inapprepriately debited or credited to the Capital Surplus account.

Explanation / Answer

Balance as per statement 179000 Adjustments for:    Stock dividend -15500    Prior period adjustments -12600    Cash dividenddeclared -18600 Total adjustments -46700 Corrected balance of retained earnings 132300

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