Parrish pg 13Please show me how to find the missing amount in the followig questions.  I need the equation on how to solved4) Revenues $6000    Dividends declared $0    Expenses $Unknown    1/1 RE $12000    12/31 RE $80005) Revenue $Unknown    Dividends $3000    Expenses $6000    1/1 RE $8000    12/31 RE $9000

Question
Asked Nov 3, 2019

Parrish pg 13

Please show me how to find the missing amount in the followig questions.  I need the equation on how to solved

4) Revenues $6000

    Dividends declared $0

    Expenses $Unknown

    1/1 RE $12000

    12/31 RE $8000

5) Revenue $Unknown

    Dividends $3000

    Expenses $6000

    1/1 RE $8000

    12/31 RE $9000

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Step 1

The amount of retained earnings is used by business for future dividend distribution, investment purpose and expansion of business. It is the amount left from net profit after distribution of dividend to shareholders. The formula of calculating retained earning ending balance is modified to calculate amount of expenses and revenue .

Formula of calculating retained earning ending balance is as follows:

(retained earning beginning balance+revenues
Retained earning ending balance = |
-expenses -dividend declared
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(retained earning beginning balance+revenues Retained earning ending balance = | -expenses -dividend declared

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Step 2

4)

Given:

Revenue: $6,000

Dividend declared: $0

Retained earnings on 1/1 is $12,000

Retained earnings balance on 31/12 is $8,000

Expenses are calculated as follows:

 

retained earning beginning balance +revenue
-dividend declared - retained earning ending balance
Expenses
(S,12000+ $6,000-S0-S8,000)
$10,000
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retained earning beginning balance +revenue -dividend declared - retained earning ending balance Expenses (S,12000+ $6,000-S0-S8,000) $10,000

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Step 3

5)

Given:

Dividend declared: $3,000

Expenses: $6,000

Retained earnings on 1/1 is $8,000

Retained earnings b...

retained earning ending balance + expenses
Revenues =
+dividend declared - retained earning ending balance
= ($9,000 $6, 000 $3, 000- $8, 000)
= $10,000
help_outline

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retained earning ending balance + expenses Revenues = +dividend declared - retained earning ending balance = ($9,000 $6, 000 $3, 000- $8, 000) = $10,000

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