mahomes company reported the following data at the end of its first year of operations on december 31. cash…

mahomes company reported the following data at the end of its first year of operations on december 31. cash $6,000 accounts receivable 7,000 equipment 9,000 land 34,000 accounts payable 3,000 common stock 15,000 dividends 22,000 net income 60,000 complete this question by entering your answers in the tabs below. required a required b prepare its year - end statement of retained earnings. hint: retained earnings on january 1 was $0. mahomes company statement of retained earnings for year ended december 31 retained earnings, january 1 $ 0

mahomes company reported the following data at the end of its first year of operations on december 31. cash $6,000 accounts receivable 7,000 equipment 9,000 land 34,000 accounts payable 3,000 common stock 15,000 dividends 22,000 net income 60,000 complete this question by entering your answers in the tabs below. required a required b prepare its year - end statement of retained earnings. hint: retained earnings on january 1 was $0. mahomes company statement of retained earnings for year ended december 31 retained earnings, january 1 $ 0

Answer

Explanation:

Step1: Recall the formula for ending retained earnings

Ending retained earnings = Beginning retained earnings + Net income - Dividends.

Step2: Identify the values

Beginning retained earnings = $0$, Net income = $60000$, Dividends = $22000$.

Step3: Calculate ending retained earnings

$0 + 60000- 22000=38000$.

Answer:

Particulars Amount
Retained earnings, January 1 $0$
Add: Net income $60000$
Less: Dividends $22000$
Retained earnings, December 31 $38000$