I'm stuck on a problem, and I hope someone here will be able to help.

The goal is to find the retained earnings for this year, but the only information given is the assets, liabilities, and capital stock. I'm unsure how to figure out the retained earnings from this information since the textbook only gives this formula: retained earnings = beginning retained earnings + net income - dividends

2xxx
Assets = 350,000
Liabilities = 80,000
Capital stock = 210,000

I'm grasping at straws here, but this is what I've figured out. I'm sure it's wrong! Lol

Assets = Liabilites + Owners' Equity
350,000 = 80,000 + (210,000 - x) (it's not a balanced equation with just the 80k and 210k)
x = 60000

My guess is the 60,000 is the retained earnings, but I'm not sure?

Thanks in advance for any help that anyone can offer.

Yes,
Your answer is correct although your equation is incorrect. Owners' equity=capital
stock + retained earnings(x).
Therefore x=Assets-Liabilities-capital stock.

$60,000 is correct.

In your equation, you wrote 210,000 - x, it should have been +x

Thank you both for the help!

Beginning retained earningss is 89,089 net income is a loss 0 for dividends and ending retained rearnings is 69674 how do I get the net income

Quote:

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Originally Posted by 2boys4me2love

I'm stuck on a problem, and I hope someone here will be able to help.

The goal is to find the retained earnings for this year, but the only information given is the assets, liabilities, and capital stock. I'm unsure how to figure out the retained earnings from this information since the textbook only gives this formula: retained earnings = beginning retained earnings + net income - dividends

2xxx
Assets = 350,000
Liabilities = 80,000
Capital stock = 210,000

I'm grasping at straws here, but this is what I've figured out. I'm sure it's wrong! Lol

Assets = Liabilites + Owners' Equity
350,000 = 80,000 + (210,000 - x) (it's not a balanced equation with just the 80k and 210k)
X = 60000

My guess is the 60,000 is the retained earnings, but I'm not sure?

Thanks in advance for any help that anyone can offer.

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This has been answered in previous questions

For the beginner accounting 1 students when looking at the trial balance sheet. To get the retained Earnings it is

TOTAL DEBIT - TOTAL CREDITS = RE

Quote:

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Originally Posted by IMBeliever

For the beginner accounting 1 students when looking at the trial balance sheet. To get the retained Earnings it is

TOTAL DEBIT - TOTAL CREDITS = RE

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This is misleading and incorrect

assets(debits) - liabilities(credits) = Equity
Equity = issued capital + retained earnings

Both issued capital and retained earnings are also credits