In: Accounting
At the beginning of the year, a company's balance sheet reported the following balances: Total Assets = $165,000; Total Liabilities = $24,300; Total Paid-in capital of $56,700; and Retained earnings = $84,000. During the year, the company reported revenues of $49,600 and expenses of $32,400. In addition, dividends for the year totaled $21,600. Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be:
Calculation of ending balance of retained earnings :
Particulars | $ |
Beginning Balance of Retained Earnings | 84000 |
Add : Net income for the year | 17200 |
Less : Dividends for the year | ( 21600 ) |
Ending Balance of Retained Earnings | 79600 |
Calculatiom of Net Income :
Particulars | $ |
Total Revenue | 49600 |
Less : Expenses | ( 32400 ) |
Net Income for the year | 17200 |