Question

On December 31 of year 1, Acme Company had assets of $149021, liabilities of $98453, and...

On December 31 of year 1, Acme Company had assets of $149021, liabilities of $98453, and capital stock of $30393. During year 2, Acme earned revenues of $45683 and incurred expenses of $33373. During year 2 the firm declared and paid Dividends amounting to $3011. Compute the company’s retained earnings on December 31 of year 1.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Calculation of retained earning on December 31 of Year 1:
As per Balance Sheet Equation,
Stockholder's Equity = Total Assets - Total Liabilities
= $       1,49,021 - $       98,453
= $           50,568
Retained Earning = Stockholder's Equity - Capital Stock
= $           50,568 - $       30,393
= $           20,175
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On December 31 of year 1, Acme Company had assets of $145998, liabilities of $95447, and...
On December 31 of year 1, Acme Company had assets of $145998, liabilities of $95447, and capital stock of $30061. During year 2, Acme earned revenues of $45622 and incurred expenses of $33671. During year 2 the firm declared and paid Dividends amounting to $2633. Compute the company’s retained earnings (the total amount in the books) on December 31 of year 2..
At the start of the year, Acme Company had liabilities of $49452 and capital stock of...
At the start of the year, Acme Company had liabilities of $49452 and capital stock of $151007. At the end of the year, retained earnings amounted to $134544. Net income for the year was $44671 45,000, and $12607 15,000 of dividends were declared and paid. Compute retained earnings at the beginning of the year.
Use the following information to answer questions 1 - 13 As of December 31, 2014 assets...
Use the following information to answer questions 1 - 13 As of December 31, 2014 assets were $20, liabilities were $12 and paid-in-capital was $1. There was no treasury stock or accumulated other comprehensive income at either the beginning or ending of 2015. During the year revenues were $40, gains (net of losses) were $1, paid-in-capital increased by $2 and the company paid out dividends of $4. At the end of the year, equity was $22 and total liabilities were...
As of December 31, 2016, Flowers Company had total assets of $30,000, total liabilities of $9,000,...
As of December 31, 2016, Flowers Company had total assets of $30,000, total liabilities of $9,000, and common stock of $15,000. The company’s 2016 income statement contained revenue of $5,000 and expenses of $3,000. The 2016 statement of changes in stockholder’s equity stated that $400 of dividends were paid to investors. a. Determine the before-closing balance in the Retained Earnings account on December 31, 2016. B. Determine the after-closing balance in the Retained Earnings account on December 31, 2016.
Grizzly Company had Retained Earnings at December 31, 2018 of $202,000. During 2019, the company had...
Grizzly Company had Retained Earnings at December 31, 2018 of $202,000. During 2019, the company had revenues of $402,000 and expenses of $351,000, and the company declared and paid dividends of $11,200. Retained earnings on the balance sheet as of December 31, 2019 will be: $253,000. $39,800. $241,800. $292,800.
The amounts of the assets and liabilities of Journey Travel Agency at December 31, 2018, the...
The amounts of the assets and liabilities of Journey Travel Agency at December 31, 2018, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $640,000 on January 1, 2018, the beginning of the year. During the year, dividends of $45,000 were paid. Accounts payable $ 71,000 Accounts receivable 268,000 Cash 191,500 Common stock 70,000 Fees earned 851,000 Land 546,000 Miscellaneous expense 6,700 Rent expense 33,000 Supplies 5,700 Supplies expense 4,100 Utilities...
Toth Company had the following assets and liabilities on the dates indicated. December 31 Total Assets...
Toth Company had the following assets and liabilities on the dates indicated. December 31 Total Assets Total Liabilities 2016 $469,000 $216,000 2017 $549,000 $266,000 2018 $679,000 $366,000 Toth began business on January 1, 2016, with an investment of $95,000 from stockholders. From an analysis of the change in stockholders’ equity during the year, compute the net income (or loss) for: (a) 2016, assuming Toth paid $25,000 in dividends for the year.
Toth Company had the following assets and liabilities on the dates indicated. December 31 Total Assets...
Toth Company had the following assets and liabilities on the dates indicated. December 31 Total Assets Total Liabilities 2016 $469,000 $216,000 2017 $549,000 $266,000 2018 $679,000 $366,000 Toth began business on January 1, 2016, with an investment of $95,000 from stockholders. From an analysis of the change in stockholders’ equity during the year, compute the net income (or loss) for: (a) 2016, assuming Toth paid $25,000 in dividends for the year. Net income (loss) for 2016: (b) 2017, assuming stockholders...
As of December 31, 2014 assets were $20, liabilities were $12 and paid-in-capital was $1. There...
As of December 31, 2014 assets were $20, liabilities were $12 and paid-in-capital was $1. There was no treasury stock or accumulated other comprehensive income at either the beginning or ending of 2015. During the year revenues were $40, gains (net of losses) were $1, paid-in-capital increased by $2 and the company paid out dividends of $4. At the end of the year, equity was $22 and total liabilities were $20. 10) What was the asset turnover for the year...
Presented below is certain information pertaining to Edson Company.             Assets, January 1                &
Presented below is certain information pertaining to Edson Company.             Assets, January 1                                                                            $250,000             Assets, December 31                                                                        230,000             Liabilities, January 1                                                                          150,000             Common stock, December 31                                                             90,000             Retained earnings, December 31                                                       41,000             Common stock sold during the year                                                    10,000             Dividends declared during the year                                                     13,000 Compute the net income for the year.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT