Chapter 7
Corporations: The Financial Statements
333
Prepare a statement of retained earnings for Montana Inc. for the year ended May 31, 2016.
AP-5A (
3
)
Top Cuisine Inc. has a March 31 year-end. Retained earnings at March 31, 2015 had a credit
balance of $54,700. During the 2016 fiscal year, net income was $24,615 and dividends of
$12,600 were declared and paid. During the 2017 fiscal year, Top Cuisine had a net loss of
$16,680 and dividends of $10,400 were declared but not yet paid.
Prepare statements of retained earnings for Top Cuisine Inc. as at March 31, 2016 and March
31, 2017.
