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Tseth
Jan 22, 2014, 07:15 PM
A company had a revenue of 250000, rent expense of 10000, utility expense of 3500, salary expense of 18500, depreciation expense of 9,000, advertising expense of4500, dividends in the amount of 18000, and a beginning balance in retained earnings of 17900. What is the balance in retained earnings for the end of the period?

pready
Jan 23, 2014, 09:18 AM
You have to find Net Income first, with what you have so: Net Income = Revenues - Expenses.

Now to find Ending Retained Earnings: Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividends