Answered

Find the best answers to your questions at Westonci.ca, where experts and enthusiasts provide accurate, reliable information. Experience the convenience of getting reliable answers to your questions from a vast network of knowledgeable experts. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

What’s the formula for the statement of retained earnings and can someone please tell me????? I have an accounting test next week and I need helpppp asapppppppp

Sagot :

Nepalieducation

Answer:

Current Retained Earnings + Profit/Loss – Dividends = Retained Earnings

Step-by-step explanation:

Let’s say your company went into business on January 3, 2022. Your retained earnings account on January 3, 2022, will read $0 because you have no earnings to retain.

Now let’s say that in January you earn $5,000 in net income (from your income statement) and don’t issue any dividends.

That means that on February 3, your company’s retained earnings will be $5,000:

Current retained earnings + Net income - Dividends = Retained earnings

$0 + $5,000 - $0 = $5,000

This makes sense: you earned $5,000 in profits and retained all of them.

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.