Do you add or subtract total retained earnings with paid in capital when accounting stock?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 9MC: Cash dividends declared out of current earnings were distributed to an investor. How will the...
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Do you add or subtract total retained earnings with paid in capital when accounting stock? 

 

Expert Solution
Explanation -

1. Retained Earnings -

Retained Earnings is the retained accumulated profit of the company over the past years. It includes Net Income/ Loss earned by the company, Dividend Declared.

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