Retained Earnings are the accumulated profit which includes profit of all past years. Retained earnings increases when company earns profit and decreases when company incurs loss. Retained earnings are also decreases when company pays dividends. To Prepare: Statement of retained earnings.

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Chapter 1, Problem 1.7.2P

To determine

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Retained Earnings are the accumulated profit which includes profit of all past years. Retained earnings increases when company earns profit and decreases when company incurs loss. Retained earnings are also decreases when company pays dividends.

To Prepare: Statement of retained earnings.

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