exercise 13 - 17 (static) preparing a statement of retained earnings lo c3\nprepare a statement of retained…
exercise 13 - 17 (static) preparing a statement of retained earnings lo c3\nprepare a statement of retained earnings for tidal company for the current year ended december 31 using the following data\nnote: amounts to be deducted should be indicated by a minus sign.\ncash dividends declared and paid in current year: $8,800\nretained earnings at december 31, prior year: $64,800\nnet income in current year: $33,800\ntidal company\nstatement of retained earnings\nfor current year ended december 31
Answer
Explanation:
Step1: Start with prior - year retained earnings
Retained earnings at December 31, prior year = $64,000
Step2: Add net income
Net income in current year = $33,000 Total = $64,000 + $33,000=$97,000
Step3: Subtract cash dividends
Cash dividends declared and paid in current year = $8,000 Final retained earnings = $97,000-$8,000 = $89,000
Answer:
| Tidal Company | |
|---|---|
| Statement of Retained Earnings | |
| For Current Year Ended December 31 | |
| Retained earnings at December 31, prior year | $64,000 |
| Add: Net income | $33,000 |
| Subtract: Cash dividends | - $8,000 |
| Retained earnings at December 31, current year | $89,000 |