Calculate retained earnings From the following data, calculate the retained earn

Question

Calculate retained earnings From the following data, calculate the retained earnings balance as of December 31, 2009: Retained earnings, December 31 , 201 0 . . . . . . . . . . . . . . . . . . . . . . . . . . .$841,200 Decrease in total liabilities during 201 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . .$183,200 Gain on the sale of buildings during 201 0 . . . . . . . . . . . . . . . . . . . . . . . . . .$64,400 Dividends declared and paid in 201 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$18,000 Proceeds from sale of common stock in 201 0 . . . . . . . . . . . . . . . . . . . . . .$197,600 Net income for the year ended December 31 , 201 0 . . . . . . . . . . . . . . . . . . $90,400

Explanation / Answer

Best Answer - Chosen by Voters To calculate the ending balance for retained earnings balance: Beginning balance + Net income (or - Net loss) - Dividends = Ending balance Since you want the beginning balance, just flip it around: Ending balance - Net Income (or + Net loss) + Dividends = Beginning balance Since you've left out the ending balance (Dec. 31, 2011) retained earnings balance, I'll just show you the formula. Ending balance (Dec. 31, 2011) + 46,000 + 67,200 = Beginning balance (Dec. 31, 2010) Source(s): Accounting Fan

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.