Question
Asked Oct 27, 2019
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Please solve the following calculation and describe in steps how you solved it

Revenues for 2028 $3000

Dividends declared in 2028 $2000

Expenses for 2028 $1000

January 1 retained earnings balance ???

December 31 retained earnings balance $6000

 

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Expert Answer

Step 1

Statement of Retained Earning is a financial statement that represents the changes to the retained earnings for the company over a particular period.

Step 2

Working:

Given:

Revenue = $3,000

Expense = $1,000

Dividend = $2,000

December 31st balance = $6,000

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Income for the year = Revenue - Expense = S3,000 $1,000 S2,000

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Step 3

Computation of Retained Ear...

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Computation of Retained Earnings Particulars Opening Balance Add: Income for the year Less: Dividend paid Amount XXX XXX (XXX Closing Balance XXX

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