prepare a statement of retained earnings for tidal company for the current year ended december 31 using the…
prepare a statement of retained earnings for tidal company for the current year ended december 31 using the following data. note: amounts to be deducted should be indicated by a minus sign. cash dividends declared and paid in current year $ 10,200 retained earnings at december 31, prior year 64,400 net income in current year 37,400 tidal company statement of retained earnings for current year ended december 31
Answer
Explanation:
Step1: Recall the formula
Retained earnings = Beginning - dividends + net income
Step2: Substitute values
$64400 - 10200+37400$
Step3: Calculate
$64400+37400 - 10200=91600$
Answer:
| Description | Amount |
|---|---|
| Retained earnings, December 31, prior - year | $64,400$ |
| Add: Net income for the current year | $37,400$ |
| Less: Cash dividends declared and paid in current year | $(10,200)$ |
| Retained earnings, December 31, current year | $91,600$ |