Question

Electronic Instruments had retained earnings of $350,000 at December​ 31, 2017. Net income for 2018 totaled $ 215 comma 000​, and dividends declared for 2018 were $ 90 comma 000. How much retained earnings should Electronic report at December

Answer 1

Answer:

$475,000

Step-by-step explanation:

We are asked to find the retained earnings for Electronic report at December 2018.

$\text{Retained earnings}=\text{Beginning period retained earnings + Net income/Loss - Cash dividends}$

Substitute the given values:

$\text{Retained earnings}=\ 350,000+\ 215,000-\ 90,000$

$\text{Retained earnings}=\ 475,000$

Therefore, the retained earnings of Electronic report at December 2018 would be $475,000.