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hram777 [196]
3 years ago
11

Instruments had retained earnings of $ 390 comma 000 at December​ 31, 2017. Net income for 2018 totaled $ 220 comma 000​, and di

vidends declared for 2018 were $ 40 comma 000. How much retained earnings should Quartz report at December​ 31, 2018​?
Business
1 answer:
VashaNatasha [74]3 years ago
3 0

Answer:

The retained earnings should Quartz report at December​ 31, 2018 is $570,000

Explanation:

In this question, we apply the retained earnings equation which is shown below:

Ending retained earnings balance = Beginning retained earning balance + net income - dividend paid

= $390,000 + $220,000 - $40,000

= $570,000

The net income should be added while dividend should be deducted for finding out the ending retained earnings balance

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A corporation has a $500,000 beginning balance in retained earnings. its net income for the year was $200,000. sales revenue amo
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Given:
<span>$500,000 beg. balance in retained earnings.
</span>$200,000 <span>net income for the year
</span>$1,000,000 <span>sales revenue
</span>$100,000 <span>dividends declared and paid by year-end

Retained earning is the amount left from net income after dividends have been paid. In the given data, sales revenue is not included in the Retained earnings report. It is reflected in the Income statement which generates the Net income. 

Retained Earnings, beg. balance            500,000
Add: Net Income for the year               <u>   200,000</u>
Total                                                                           700,000
Less: Dividends declared and paid this year          <u>   (100,000)</u>
Retained Earnings, end balance                             600,000

</span>
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