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mariafig2
Feb 28, 2007, 01:37 PM
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

CaptainForest
Feb 28, 2007, 08:57 PM
What do YOU think the answer is?

Post what YOU think the answer is and show your work, and we will look it over for you.

candyland
Mar 28, 2007, 06:07 PM
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.

This was a tough question for me to answer.

candyland
Mar 28, 2007, 06:29 PM
$230,000
+350,000
-80,000
-210,000
-25,000
= $265,000