How do i find the retained earnings? What is the formula to find retained earnings? What is the retained earnings? Accounts payable $ 5,000 Notes payable $ 7,000 Accounts receivable 2,000 Rent expense 10,000 Advertising expense 4,000 Retained earnings? Cash 3,100 Service revenue 25,000 Common stock 15,000 Supplies 1,900 Dividends 2,500 Supplies expense 1,700 Equipment 26,800 Net Income 9,300

wstecznyg5 2022-07-15 Answered
How do i find the retained earnings? What is the formula to find retained earnings? What is the retained earnings?
Accounts payable $ 5,000 Notes payable $ 7,000
Accounts receivable 2,000 Rent expense 10,000
Advertising expense 4,000 Retained earnings?
Cash 3,100 Service revenue 25,000
Common stock 15,000 Supplies 1,900
Dividends 2,500 Supplies expense 1,700
Equipment 26,800 Net Income 9,300
You can still ask an expert for help

Expert Community at Your Service

  • Live experts 24/7
  • Questions are typically answered in as fast as 30 minutes
  • Personalized clear answers
Learn more

Solve your problem for the price of one coffee

  • Available 24/7
  • Math expert for every subject
  • Pay only if we can solve it
Ask Question

Answers (1)

frisiao
Answered 2022-07-16 Author has 13 answers
INCOME STATEMENT
SERVICE REVENUE = 25000
LESS:-RENT EXPENSE = (10000)
LESS:-ADVERTISING EXPENSE = (4000)
LESS:-SUPPLIES EXPENSE = (1700)
PROFIT = 9300
LESS:DIVIDEND PAID = (2500)
PROFIT TRANSFERRED TO RETAINED EARNINGS = 6800
RETAINED EARNINGS ARE THE UNDISTRIBUTED PROFIT OF THE COMPANY FOR A FINANCIAL YEAR THAT IS RE-INVESTED IN THE COMPANY .
ONE MORE WAY TO FIND RETAINED EARNINGS:-
BALANCE SHEET
ASSETS = ACCOUNTS RECIEVABLE + CASH + SUPPLIES + EQIPMENT
= 2000 + 3100 + 1900 + 26800
= 33800
ASSETS = LIABILITIES
LIABILITIES = ACCOUNT PAYABLE + NOTES PAYABLE + COMMON STOCK + RETAINED EARNIGS
33800 = 5000 + 7000 + 15000 +  RETAINED EARNINGS
RETAINED EARNINGS = 6800
Did you like this example?
Subscribe for all access

Expert Community at Your Service

  • Live experts 24/7
  • Questions are typically answered in as fast as 30 minutes
  • Personalized clear answers
Learn more

New questions