January 1, 2017, Assembly System Corporation's Retained Earnings account had a balance of $675,000. During 2017, cash dividends of $25,000 and stock dividends with a market value of $55,000 were declared and distributed. Assembly System Corporation had a net loss of $5,000 in 2017. What is the balance in Retained Earnings that would appear on Assembly System Corporation's statement of shareholders' equity on December 31, 2017
Calculation of Closing Balance of Retained Earning
Retained Earning Balance on January 1, 2017 | $675,000 | |
Less: Net Loss | ($5,000) | |
$6,70,000 | ||
Less: Cash Dividends | $25,000 | |
Stock Dividends | $55,000 | |
($80,000) | ||
Retained Earning Balance, December 31 | $5,90,000 |
Hence Retained Earnings that would appear on Assembly System
Corporation's
statement of shareholders' equity on December 31, 2017 is
$5,90,000
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