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.
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