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Nitella [24]
3 years ago
14

The Retained earnings account has a credit balance of $34,000 before closing entries are made. If total revenues for the period

are $105,200, total expenses are $77,800, and dividends are $18,000, what is the ending balance in the Retained earnings account after all closing entries are made
Business
2 answers:
Mnenie [13.5K]3 years ago
7 0

Answer:

$43,400

Explanation:

Retained Earning is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.

As per given data

Retained Earning = $34,000

Adjustments

Net Income =Revenue - Total Expenses = $105,200 - $77,800 = $27,400

Dividend Payment = $18,000

Additions to Retained Earning = $27,400 - $18,000 = $9,400

Adjusted balance of Retained Earning = $34,000 + $9,400 = $43,400

nevsk [136]3 years ago
4 0

Answer:

The ending balance of retained earnings account is $43,400.

Explanation:

Simply put, retained earnings are an amount of net income left after payment of dividends to shareholders. This amount accumulates over time period as the company retains profit for its operations. Usually, it is arrived at using the formula below:

Retained earnings = Opening balance + Net income (or loss) - Cash dividends - Stock dividends

At the instance of the question, retained earnings = $34,000 + $27,400 ($105,200 - $77,800) - $18,000 = $43,400.

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A foreign company (whose sales will not affect Trescott's market) offers to buy 3,000 units at $17.00 per unit. In addition to the variable manufacturing costs, selling these units would increase fixed overhead by $500 and selling and administrative costs by $1,000. If Trescott accepts the offer, its profits will increase (decrease) by:

Answer : If Cornish accepts this order, its profits will increase by $13,500.

<u>Calculation of Variable Costs per unit :</u>

Direct Material and labor per unit = Total Direct Material and labor / No. of units sold

Direct Material and labor per unit =200000/20000 = $10

Variable Overhead per unit = Total Variable Overhead / No. of units sold

Variable Overhead per unit = (100000*0.4)/20000 = $2

Variable Cost per unit = $12 (Direct Material and labor per unit + Variable Overhead per unit)

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No. of units = 3,000

Increase in Fixed Costs = Inc in fixed overhead + inc in S&A Expenses

Increase in Fixed Costs = $1500 (500 + 1000)

Total Cost of new order = (Variable Cost per unit * No. of units) + Increased Fixed Cost

Total Cost of new order = (12*3000) + 1500 = $37,500

Total Revenues from new order = Selling price per unit * No. of units sold

Total Revenues = $51,000 (17 *3,000)

Profit from new order = Total Revenues from new order - Total Cost of new order

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6 0
3 years ago
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Answer:

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Which of the following serve as intermediaries channeling the savings of individuals, businesses and governments into loans and
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8 0
3 years ago
On January 15, 2017, Vern purchased the rights to a mineral interest for $3,500,000. At that time it was estimated that the reco
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Answer:

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given data

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to find out

Vern's depletion deduction

solution

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Vern's depletion deduction is  $175000

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