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February 1, 2019, the balance of the retained earnings account of Blue Power Corporation was $441,000. Revenues for ruary totaled $86,100, of which $80,500 was collected in cash. Expenses for February totaled $78,600, of which $64,800 paid in cash. Dividends declared and paid during February were $7,200.

February 1, 2019, the balance of the retained earnings account of Blue Power Corporation was $441,000. Revenues for ruary totaled $86,100, of which $80,500 was collected in cash. Expenses for February totaled $78,600, of which $64,800 paid in cash. Dividends declared and paid during February were $7,200.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 34BE: Brief Exercise 3-34 Preparing a Retained Earnings Statement Refer to the information presented in...
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Exercise 4-13 (Algo) Calculate retained earnings LO 3 On February 1, 2019, the balance of the retained earnings account of Blue Power Corporation was $441,000. Revenues for February totaled $86,100, of which $80,500 was collected in cash. Expenses for February totaled $78,600, of which $64,800 was paid in cash. Dividends declared and paid during February were $7,200. Required: Calculate the retained earnings balance at February 28, 2019. (Amounts to be deducted should be indicated with a minus sign.) Answer is complete but not entirely correct. Retained Earnings Balance, February 1, 2019 $ 441,000 Revenues 86,100 Expenses 78,600 164,700 Dividends 7,200 Balance, February 28, 2019 $ 612,900
Transcribed Image Text:Exercise 4-13 (Algo) Calculate retained earnings LO 3 On February 1, 2019, the balance of the retained earnings account of Blue Power Corporation was $441,000. Revenues for February totaled $86,100, of which $80,500 was collected in cash. Expenses for February totaled $78,600, of which $64,800 was paid in cash. Dividends declared and paid during February were $7,200. Required: Calculate the retained earnings balance at February 28, 2019. (Amounts to be deducted should be indicated with a minus sign.) Answer is complete but not entirely correct. Retained Earnings Balance, February 1, 2019 $ 441,000 Revenues 86,100 Expenses 78,600 164,700 Dividends 7,200 Balance, February 28, 2019 $ 612,900
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Retained earnings at the end are calculated by adding the net income to the opening retained earings and deducting the dividend paid by the company.

 

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