At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Cash Accounts receivable Accounts payable Common stock Retained earnings Balance $ 27,500 18,000 13,200 19,100 13,200 The following events apply to Oak Consulting for Year 2: 1. Provided $71,700 of services on account. 2. Incurred $3,400 of operating expenses on account. 3. Collected $46,200 of accounts receivable. 4. Paid $30,100 cash for salaries expense. 5. Paid $14,940 cash as a partial payment on accounts payable. 6. Paid a $9,400 cash dividend to the stockholders.
At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Cash Accounts receivable Accounts payable Common stock Retained earnings Balance $ 27,500 18,000 13,200 19,100 13,200 The following events apply to Oak Consulting for Year 2: 1. Provided $71,700 of services on account. 2. Incurred $3,400 of operating expenses on account. 3. Collected $46,200 of accounts receivable. 4. Paid $30,100 cash for salaries expense. 5. Paid $14,940 cash as a partial payment on accounts payable. 6. Paid a $9,400 cash dividend to the stockholders.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Answer full question.
![### Change in Retained Earnings for the Year
#### Question:
e. What is the amount of change in retained earnings for the year?
#### Input Field:
- **Change in retained earnings**: [input field]
#### Explanation:
In this section, students are asked to determine the amount of change in retained earnings for a given year, commonly assessed in accounting and finance courses. The change in retained earnings can be calculated typically by using the formula:
\[ \text{Change in Retained Earnings} = \text{Net Income} - \text{Dividends Paid} \]
Students should input their calculated amount in the provided field.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb75e2346-ebf2-4e14-802c-14c74b6109ef%2F9d801da2-2be5-43db-8ff2-04f30b6f5562%2Fmqhyfb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Change in Retained Earnings for the Year
#### Question:
e. What is the amount of change in retained earnings for the year?
#### Input Field:
- **Change in retained earnings**: [input field]
#### Explanation:
In this section, students are asked to determine the amount of change in retained earnings for a given year, commonly assessed in accounting and finance courses. The change in retained earnings can be calculated typically by using the formula:
\[ \text{Change in Retained Earnings} = \text{Net Income} - \text{Dividends Paid} \]
Students should input their calculated amount in the provided field.
![### Required Information
**[The following information applies to the questions displayed below.]**
At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:
<table>
<tr>
<th>Account</th>
<th>Balance</th>
</tr>
<tr>
<td>Cash</td>
<td>$ 27,500</td>
</tr>
<tr>
<td>Accounts receivable</td>
<td>$ 18,000</td>
</tr>
<tr>
<td>Accounts payable</td>
<td>$ 13,200</td>
</tr>
<tr>
<td>Common stock</td>
<td>$ 19,100</td>
</tr>
<tr>
<td>Retained earnings</td>
<td>$ 13,200</td>
</tr>
</table>
The following events apply to Oak Consulting for Year 2:
1. Provided $71,700 of services on account.
2. Incurred $3,400 of operating expenses on account.
3. Collected $46,200 of accounts receivable.
4. Paid $30,100 cash for salaries expense.
5. Paid $14,940 cash as a partial payment on accounts payable.
6. Paid a $9,400 cash dividend to the stockholders.
This information provides a snapshot of Oak Consulting's financial activities and balances at the start of Year 2 as well as significant financial events during the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb75e2346-ebf2-4e14-802c-14c74b6109ef%2F9d801da2-2be5-43db-8ff2-04f30b6f5562%2F0lsn4p8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Required Information
**[The following information applies to the questions displayed below.]**
At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:
<table>
<tr>
<th>Account</th>
<th>Balance</th>
</tr>
<tr>
<td>Cash</td>
<td>$ 27,500</td>
</tr>
<tr>
<td>Accounts receivable</td>
<td>$ 18,000</td>
</tr>
<tr>
<td>Accounts payable</td>
<td>$ 13,200</td>
</tr>
<tr>
<td>Common stock</td>
<td>$ 19,100</td>
</tr>
<tr>
<td>Retained earnings</td>
<td>$ 13,200</td>
</tr>
</table>
The following events apply to Oak Consulting for Year 2:
1. Provided $71,700 of services on account.
2. Incurred $3,400 of operating expenses on account.
3. Collected $46,200 of accounts receivable.
4. Paid $30,100 cash for salaries expense.
5. Paid $14,940 cash as a partial payment on accounts payable.
6. Paid a $9,400 cash dividend to the stockholders.
This information provides a snapshot of Oak Consulting's financial activities and balances at the start of Year 2 as well as significant financial events during the year.
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