collinsdaycare07
Oct 29, 2007, 08:00 PM
Retained Earnings Computations
During 2006, Edgemont Corporation had revenues of $230,000 and expenses, including income
taxes, of $190,000. On December 31, 2005, Edgemont had assets of $350,000, liabilities
of $80,000, and capital stock of $210,000. Edgemont paid a cash dividend of $25,000 in 2006.
No additional stock was issued. Compute the retained earnings on December 31, 2005, and 2006.
During 2006, Edgemont Corporation had revenues of $230,000 and expenses, including income
taxes, of $190,000. On December 31, 2005, Edgemont had assets of $350,000, liabilities
of $80,000, and capital stock of $210,000. Edgemont paid a cash dividend of $25,000 in 2006.
No additional stock was issued. Compute the retained earnings on December 31, 2005, and 2006.