The beginning balance in Common stock and Retained Earnings of Alpha Technologies were $100,000 and $80,000, respectively. The r

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2 years ago

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The beginning balance in Common stock and Retained Earnings of Alpha Technologies were $100,000 and $80,000, respectively. The r

evenues and expenses during the accounting period were $60,000 and $40,000, respectively. Assume no dividends were paid by Alpha Technologies. Please calculate the ending balance in Retained Earnings.

Business

1 answer:

Reil [10] · Answer 1 · 2023-10-24T21:03:39+03:00

The ending balance in Retained Earnings for Alpha Technologies equals $100,000.

<h3>What is a Retained Earnings?</h3>

This refers to the company's cumulative net earnings or profit after the account for dividends.

The ending Retained Earnings balance are derived by taking the beginning period, adding any net income or net loss, and subtracting any dividends.

Ending Retained Earnings = Beg Retained Earnings + (Revenues - Expenses) - Dividend

Ending Retained Earnings = $80,000 + ($60,000 - $40,000) - 0

Ending Retained Earnings = $100,000

Therefore, the ending balance in Retained Earnings for Alpha Technologies equals $100,000.