Tentco reported the following amounts in various statements included in its 2017 annual report.(All amounts are stated in millions of dollars. )

$\begin{array}{lr}
\text { Net income for } 2017 & \$ 142 \
\text { Cash dividends declared in } 2017 & 15 \
\text { Retained earnings, December } 31,2016 & 95
\end{array}$ REQUIRED:
(1)Prepare a statement of retained earnings for the year ended December 31,2017.
(2)Assume that Tentco presents a statement of stockholders' equity rather than a statement of retained earnings in its annual report.Explain how the information differs between the two statements.

Question

Tentco reported the following amounts in various statements included in its 2017 annual report.(All amounts are stated in millions of dollars. )
 
 $\begin{array}{lr}
\text { Net income for } 2017 & \$ 142 \
\text { Cash dividends declared in } 2017 & 15 \
\text { Retained earnings, December } 31,2016 & 95
\end{array}$ REQUIRED:
(1)Prepare a statement of retained earnings for the year ended December 31,2017.
(2)Assume that Tentco presents a statement of stockholders' equity rather than a statement of retained earnings in its annual report.Explain how the information differs between the two statements.

Quizplus · Accepted Answer

The Answer of Tentco reported the following amounts in various statements included in its 2017 annual report.(All amounts are stated in millions of dollars. )
 
 $\begin{array}{lr}
\text { Net income for } 2017 & \$ 142 \
\text { Cash dividends declared in } 2017 & 15 \
\text { Retained earnings, December } 31,2016 & 95
\end{array}$ REQUIRED:
(1)Prepare a statement of retained earnings for the year ended December 31,2017.
(2)Assume that Tentco presents a statement of stockholders' equity rather than a statement of retained earnings in its annual report.Explain how the information differs between the two statements.

Tentco Reported the Following Amounts in Various Statements Included in Its