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-   -   How does "Bonus Payable" fit in to the calculation of retained earnings? (https://www.askmehelpdesk.com/showthread.php?t=423982)

  • Dec 10, 2009, 07:28 PM
    caculovic
    How does "Bonus Payable" fit in to the calculation of retained earnings?
    What is the ending retained earnings balance in the following situation?

    Beginning Retained earnings balance 63000
    Net income 20000
    Dividends 4000
    Bonus payable 5000
  • Dec 10, 2009, 09:28 PM
    ROLCAM

    BeginRetain earnings balance 63000
    net income 20000
    -------------------------------------
    sub total = 83,000
    LESS

    dividends 4000
    bonus payable 5000
    ------------------------
    New total 74,000 Close retain earnings.

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