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Zepler [3.9K]
3 years ago
10

At September 1, 2022, Sunland Company reported Retained Earnings of $406080. During the month, Sunland generated revenues of $57

600, incurred expenses of $34560, purchased equipment for $14400 and paid dividends of $5760. What is the balance in Retained Earnings at September 30, 2022
Business
1 answer:
Dimas [21]3 years ago
4 0

Answer:

$423,360

Explanation:

Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.

Ending retained earnings = Beginning retained earnings + additional stock issued + net income - dividend paid

net income is the difference between sales and expenses

= $406080 + $57600 - $34560 - $5760

= $423,360

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