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Please fill in the missing amount and explain the formula you used. The more detailed explanation of the process is appreciated.1) Revenue for 2008 $8,000Dividends Declared $1,000Expenses for 2008 $3,000January 1 RE Balance $5,000December 31 RE Balance ?2) Revenues for 2008 $3,000Dividends declared in 2008 $2,000Expenses for 2008 $1,000January 1 retained earnings balance ?December 31 RE balance $6,0003) Revenues for 2008 $5,000Dividends declared in 2008 ?Expenses for 2008 $4,000January 1 RE balance $8,000December 31 RE balance $3,0004) Revenues for 2008 $6,000Dividends declared for 2008 $0Expenses for 2008 ?January 1 RE balance $12,000December 31 RE balance $8,0005) Revenues for 2008 ?Dividends declared in 2008 $3,000Expenses for 2008 $6,000January 1 RE balance $8,000December 31 RE balance $9,000

Question

Please fill in the missing amount and explain the formula you used. The more detailed explanation of the process is appreciated.

1) Revenue for 2008 $8,000
Dividends Declared $1,000
Expenses for 2008 $3,000
January 1 RE Balance $5,000
December 31 RE Balance ?
2) Revenues for 2008 $3,000
Dividends declared in 2008 $2,000
Expenses for 2008 $1,000
January 1 retained earnings balance ?
December 31 RE balance $6,000
3) Revenues for 2008 $5,000
Dividends declared in 2008 ?
Expenses for 2008 $4,000
January 1 RE balance $8,000
December 31 RE balance $3,000
4) Revenues for 2008 $6,000
Dividends declared for 2008 $0
Expenses for 2008 ?
January 1 RE balance $12,000
December 31 RE balance $8,000
5) Revenues for 2008 ?
Dividends declared in 2008 $3,000
Expenses for 2008 $6,000
January 1 RE balance $8,000
December 31 RE balance $9,000

check_circleAnswer
Step 1

Part-1

First tsep is to compute the Net income as under:

Net Income = Revenues- Expenses = 8000-3000 =5000.

Now, Ending RE balance is computed with the help of following formula:

Ending Balance of RE= Begining balance of RE + Net income - Dividend = 5000+5000-1000 = 9000.

Hence, 

Answer is $ 9000.

Step 2

Part-2

First part is to compute the Net Income, as under:

Net Income = Revenues - Expenses = 3000-1000 = 2000

Formula used for Computing the begining RE balance is same as used in Part-1.

Ending RE = Begining RE + Net income - Dividend

6000 = Begining RE + 2000-2000 

Begining RE = 6000

 

Step 3

Part -3

First step is to compute the net income, as under:

NEt Income = REvenues - Expenses = 5000-4000 = 1000

Now, to compute the missing amount of dividend, the formula used is...

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