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    Camileta's Avatar
    Camileta Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 14, 2008, 11:47 AM
    Calculating retained earnings
    Hi! This is my first time doing anything accounting related and I'm majorly LOST.
    Please help me. The exercise reads as follows:

    From the following data, calculate the retained earnings balance as of December 31, 2009

    Retained earnings Dec. 31,2009 - $311,800
    Cost of equipment purchased during 2009 - $32,400
    Net loss for the year ended Dec. 31,2009 - $4,700
    Dividends declared and paid in 2009 - $18,500
    Decrease in cash balance from Jan. 1,2009 to Dec. 31,2009 - $13,600
    Decrease long term debt in 2009 - $14,800

    My book is a little confusing when in comes to equations but I'm thinking I should subtract the $32,400 and $13,600 from the original balance, plus add the $14,800 to the final result... but I don't really know what to do with the rest of the info.
    I just need some guidance... :confused:
    AdamUTsel's Avatar
    AdamUTsel Posts: 100, Reputation: 2
    Junior Member
    		  
    #2

    Sep 16, 2008, 12:33 PM
    Was your first balance suppose to read Retained Earnings, Dec 31, 2008 $311,800?

    Otherwise you answer would just be that balance without any work required...
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