Eddie zambrano corporation began operations on january 1, 2011.

E4-12 (Retained Earnings Statement) Eddie Zambrano Corporation began operations on January 1, 2011. During its first 3 years of operations, Zambrano reported net income and declared dividends as follows.     Year Net income Dividends declared     2013 $40,000 $0     2014 125,000 50,000     2015 160,000 50,000     The following information relates to 2014:   Income before income taxes $240,000 Prior period adjustment: Understatement of 2012 depreciation expense.   (Before taxes) $25,000 Cumulative decrease in income from change in inventory methods (before taxes) $35,000 Dividends declared $100,000 Of the dividends declared to date, the amount that will be paid on Jan 15, 2015 is: $25,000 Effective tax rate 40%   Instructions:

(a) Prepare a 2014 retained earnings statement for Eddie Zambrano Corporation.

(b) AssumeEddie Zambrano Corp. restricted retained earnings in the amount of $70,000
    on December 31, 2014. After this action, what would Zambrano report as total retained earnings in its
    December 31, 201
4, balance sheet?

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.

Click Here to Make an Order Click Here to Hire a Writer