Answered: Retained Earnings Statement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Retained Earnings Statement

Financial information related to Healthy Products Company for the month ended November 30, 2018, is as follows:

Net income for November	$93,500
Cash dividends paid during November	7,000
Retained earnings, November 1, 2018	2,940,000

a. Prepare a retained earnings statement for the month ended November 30, 2018. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.

Healthy Products Company
Retained Earnings Statement
For the Month Ended November 30, 2018
		$fill in the blank 0079c8fa300c05b_2
	$fill in the blank 0079c8fa300c05b_4
	fill in the blank 0079c8fa300c05b_6
		fill in the blank 0079c8fa300c05b_8
		$fill in the blank 0079c8fa300c05b_10

b. Why is the retained earnings statement prepared before the November 30, 2018, balance sheet?

To arrive at the number of shares outstanding.
To calculate the net income for the year.
To calculate the ending retained earnings balance to be included on the balance sheet.
To calculate the total assets.

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