Sumter Pumps Corporation a manufacturer of industrial pumps

Sumter Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended December 31, 20Y3:

Prepare a retained earnings statement for the year ended December 31, 20Y3.

Retained earnings, January 1, 20Y3	$573,200
Net income	63,100
Cash dividends declared	11,400
Stock dividends declared	21,500

Solution

Sumter Pumps Corporation Retained Earnings Statement For the Year Ended December 31, 20Y3 Retained earnings, January 1, 20Y3 $       5,73,200 add:Net Income $           63,100 Less: Dividend declared Cash Dividend $ 11,400 Stock Dividend $ 21,500 $           32,900 Retained earnings, December 31, 20Y3 $       6,03,400