Question

The following information has been taken from the ledger accounts of Nash Corporation.

Total income since incorporation		$337,000
Total cash dividends paid		57,000
Total value of stock dividends distributed		30,000
Gains on treasury stock transactions		19,000
Unamortized discount on bonds payable		30,000

Determine the current balance of retained earnings.

Current balance of retained earnings

$enter the current balance of retained earnings in dollars

Answer 1

Solution:
	Statement of Retained Earnings
		Amount	Amount
	Total income since Incorporation		$           337,000
	Less:
	Payment of Cash Dividends	$               57,000
	Value of Stock Dividends Distributed	$               30,000
	Total of reduction		$             87,000
	Current Balance of Retained Earnings		$           250,000
Notes:	1) Gains on treasury stock is shown seperately as additaional paid in capital - TS
	2) Unamortized discount on bonds is reduced from the balance of bonds payable