bartleby
search
close search
Hit Return to see all results

I need to find the Dec 31 Retained Earnings balance. This is the information the workbook gives. 1) Revenue for 2008 is $8000 2) Dividends declared in 2008 is $1000 3) Expenses for 2008 is $3000 4) January 1 Retained Earnings balance is $5000.Please tell me the 12/31 Retained Earnings balance and how you came to that solution. Thanks!

Question

I need to find the Dec 31 Retained Earnings balance. This is the information the workbook gives. 1) Revenue for 2008 is $8000 2) Dividends declared in 2008 is $1000 3) Expenses for 2008 is $3000 4) January 1 Retained Earnings balance is $5000.

Please tell me the 12/31 Retained Earnings balance and how you came to that solution. Thanks!

check_circleAnswer
Step 1

The net income for the year shall be computed as a first step by deducting the total expenses from the total revenues for the year.

The Net income for the year is $ 5000 which has been computed as above.

There’s more to the solution above. Sign up now to see!

Sign Up

Not ready to register yet? Check out a sample Q&A here.

Stuck on your homework?

Get expertly curated answers to your homework questions for just $9.99/month

Get As ASAP
Tagged in

Business

Accounting

Sorry about that. What wasn’t helpful?