Q6TI
Question
Sjostrom, Inc. had beginning retained earnings of \(300,000 on January 1, 2018. During the year, Sjostrom declared and paid \)140,000 of cash dividends and earned $200,000 of net income. Prepare a statement of retained earnings for Sjostrom, Inc. for the year ended December 31, 2018.
Step-by-Step Solution
Verified Answer
The statement of retained earnings for the year ended December 31, 2018, shows the balance of $360,000
1Step 1: Basic Introduction
Retained earnings is the surplus amount of profit remains with the corporation after distributing dividend to the stockholders of the corporation.
2Step 2: Statement of retained earnings
Statement of Retained Earnings December 31, 2018 | |
Retained Earnings, beginning of the year | $300,000 |
Less: Dividend Paid | ($140,000) |
Add: Net Income | $200,000 |
Retained Earnings, ending of the year | $360,000 |
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