tb problem qu. 13-169 (algo) preparing a statement of retained earnings\nuse the following information to…
tb problem qu. 13-169 (algo) preparing a statement of retained earnings\nuse the following information to prepare a statement of retained earnings for the current year ended december 31.\nretained earnings at december 31, prior year $351,000\ncash dividends declared and paid in current year $101,000\nnet income in current year $150,000\nstatement of retained earnings\nfor current year ended december 31
Answer
Explanation:
Step1: Recall the formula
Ending retained - earnings=Beginning retained - earnings+Net income - Dividends
Step2: Identify the values
Beginning retained earnings = $351,000$, Net income = $150,000$, Dividends = $101,000$
Step3: Calculate ending retained earnings
$351000 + 150000-101000=400000$
| Statement of Retained Earnings | Amount |
|---|---|
| For Current Year Ended December 31 | |
| Retained earnings, December 31, prior - year | $351,000$ |
| Add: Net income for the current year | $150,000$ |
| Less: Cash dividends declared and paid in current year | $101,000$ |
| Retained earnings, December 31, current year | $400,000$ |
Answer:
| Statement of Retained Earnings | Amount |
|---|---|
| For Current Year Ended December 31 | |
| Retained earnings, December 31, prior - year | $351,000$ |
| Add: Net income for the current year | $150,000$ |
| Less: Cash dividends declared and paid in current year | $101,000$ |
| Retained earnings, December 31, current year | $400,000$ |