On January 1, 2014, Vannon Corporation Had Retained Earnings of $378,000

Essay

On January 1, 2014, Vannon Corporation had Retained Earnings of $378,000. During the year, Vannon had the following selected transactions:
1. Declared share dividends of $40,000.
2. Declared cash dividends of $90,000.
3. A 2 for 1 share split involving the issuance of 200,000 ordinary shares with a $5 par value for 100,000 ordinary shares with a $10 par value.
4. Suffered a net loss of $70,000.
5. Corrected understatement of 2013 net income because of an inventory error of $68,000.
Instructions
Prepare a retained earnings statement for the year.