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allsm [11]
3 years ago
9

Jackson Corp. has beginning retained earnings of $400. During the year Jackson had $800 of revenues and $200 in expenses. Jackso

n paid a dividend of $100. What is retained earnings at year-end?
Business
1 answer:
Serhud [2]3 years ago
3 0

Answer:

The retained earnings for the end of the year is $900

Explanation:

Retained earning is calculated as

Beginning retained earnings + Net income - cash dividend

in the questions we were given the beginning retained earning(BRE) as $400 and Cash dividend as $100. However we were not given the actual Net income but we can derive  the net income by deducting the expenses from the total revenue.

solution

Net income = revenue - expenses = $800 - $200= $600

Now we can calculate our Retained earnings by adding

Beginning retained earning $400

Net income $ 600

and deducting the cash dividend $100

$400 + $600 - $100 = $900

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