Question
Asked Feb 6, 2020
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PARRISH 5-8 STATEMENT OF RETAINED EARNINGS MISSING AMOUNT

Please tell me what the missing amounts are in the following 2 questions and show me how you arrived at that answer.

1) Statement of Retained Earnings

Retained Earnings 1/1/28 $938,123

Net Income 43,000

Subtotal $1,026,123

Dividends 50,000

Retained Earnings 12/31/28 UNKNOWN

2) Statement of Retained Earnings

Retained Earnings 1/1/29 $575,603

Net Loss UNKOWN

Subtotal $498,667

Dividends 10,000

Retained Earnings 12/31/29

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Expert Answer

Step 1

1)

The missing amount is calculated as follows:

 

Accounting homework question answer, step 1, image 1

Resulting values are as follows:

 

Accounting homework question answer, step 1, image 2

 

Note: As per the subtotal it was assumed that the amount of beginning retained earnings is $983,123 not $938,123 (given). If the beginning retained earnings are $938,123 then the unknown amount would be $931,123 (938,123+43000-50000).

 

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