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The Dayton Corporation began the current year with a retained earnings balance of $19,365. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $3,053 on equipment. Also, during the current year, the company earned net income of $13,766 and declared cash dividends of $5,732. Compute the year-end retained earnings balance

The Dayton Corporation began the current year with a retained earnings balance of $19,365. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $3,053 on equipment. Also, during the current year, the company earned net income of $13,766 and declared cash dividends of $5,732. Compute the year-end retained earnings balance

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The Dayton Corporation began the current year with a retained earnings balance of $19,365. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $3,053 on equipment. Also, during the current year, the company earned net income of $13,766 and declared cash dividends of $5,732. Compute the year-end retained earnings balance. a. $19,365 b. $27,399 c. $24,346 d. $41,916
Transcribed Image Text:The Dayton Corporation began the current year with a retained earnings balance of $19,365. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $3,053 on equipment. Also, during the current year, the company earned net income of $13,766 and declared cash dividends of $5,732. Compute the year-end retained earnings balance. a. $19,365 b. $27,399 c. $24,346 d. $41,916
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