On February 1, 2019, the balance of the retained earnings account of Blue Power Corporation was $441,000. Revenues for February totaled $86,100, of which $80,500 was collected in cash. Expenses for February totaled $78,600, of which $64,800 was paid in cash. Dividends declared and paid during February were $7,200. Required: Calculate the retained earnings balance at February 28, 2019. (Amounts to be deducted should be indicated with a minus sign.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

Exercise 4-13 (Algo) Calculate retained earnings LO 3

On February 1, 2019, the balance of the retained earnings account of Blue Power Corporation was $441,000. Revenues for February totaled $86,100, of which $80,500 was collected in cash. Expenses for February totaled $78,600, of which $64,800 was paid in cash. Dividends declared and paid during February were $7,200.

Required:
Calculate the retained earnings balance at February 28, 2019. (Amounts to be deducted should be indicated with a minus sign.)
Retained Earnings
Balance, February 1, 2019
Revenues
Expenses
Dividends
Balance, February 28, 2019
Transcribed Image Text:Retained Earnings Balance, February 1, 2019 Revenues Expenses Dividends Balance, February 28, 2019
Expert Solution
Step 1

Retained earnings at the end are calculated by adding the net income to the opening retained earnings and deducting the dividend paid by the company.

 

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education