Log in

View Full Version : Calculate retained earnings


nylph
Feb 19, 2010, 07:44 AM
Calcutated retained earning and jounral eantries of it

nylph
Feb 19, 2010, 07:45 AM
Retained earning and its jounral entaries

nylph
Feb 19, 2010, 07:47 AM
Jounral entries

nylph
Feb 19, 2010, 07:51 AM
Teatment of retained earning and divedend in income statement and balance sheet and there journal entries

morgaine300
Feb 19, 2010, 10:58 PM
Please don't keep posting the same question over and over. I've merged all these together into one thread.

morgaine300
Feb 19, 2010, 11:03 PM
Retained earnings is the beginning balance plus net income (or minus net loss) minus any dividends declared. That's also what is on the statement of retained earnings.

They're not on an income statement. Only revenues and expenses are on the income statement. Dividends aren't on a balance sheet. Retained earnings is an equity account on the balance sheet.

As for entries, they all involve the only two things above that affect retained earnings: net income and dividends.
Net income comes from the closing entry:
Dr. Income Summary
Cr. Retained Earnings
And dividends can be done more than one way. If done in closing:
Dr. Retained Earnings
Cr. Dividends

Notice all that does is increase retained earnings with income and decrease it with dividends, the same way you figure the retained earnings ending balance.

Not having any idea what level you are at or what you are trying to do, I prefer not going into detail on any of those entries.