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Concept explainers
Concept Introduction:
Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement,
Statement of
Items reported on a retained earnings statement are explained as follows:
- Beginning Balance of Retained earnings is the ending balance of the retained earnings of the previous year.
- Net Income or Net loss is the amount of net income earned or net loss incurred for the year.
- Dividends Paid are taken for the year.
- Ending Balance of Retained earnings is calculated as follows:
Ending Balance of Retained earnings = Beginning Balance of Retained earnings + Net Income − Net income − Dividends Paid
Requirement-1
To Calculate:
The amount of retained earnings as on Dec. 31, 2019.
Concept Introduction:
Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and Cash flows statements.
Statement of Retained earnings:
Items reported on a retained earnings statement are explained as follows:
- Beginning Balance of Retained earnings is the ending balance of the retained earnings of the previous year
- Net Income or Net loss is the amount of net income earned or net loss incurred for the year.
- Dividends Paid are taken for the year.
- Ending Balance of Retained earnings is calculated as follows:
Ending Balance of Retained earnings = Beginning Balance of Retained earnings + Net Income − Net income − Dividends Paid
Requirement-2
To Discuss:
The dividend policy of the company,
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Chapter 1 Solutions
Cornerstones of Financial Accounting
- Hyundai Company had beginning raw materials inventory of $29,000. During the period, the company purchased $115,000 of raw materials on account. If the ending balance in raw materials was $18,500, the amount of raw materials transferred to work in process inventory is?arrow_forwardComputing the gross profit percentage Edible Art earned net sales revenue of $75,050,000 in 2019. The cost of goods sold was $55,650,000, and net income reached $13,000,000, the company s highest ever. Compute the company s gross profit percentage for 2019.arrow_forwardcorrect answer pleasearrow_forward
- Computing the gross profit percentage Edible Art earned net sales revenue of $75,050,000 in 2019. The cost of goods sold was $55,650,000, and net income reached $13,000,000, the company s highest ever. Compute the company s gross profit percentage for 2019. Answerarrow_forwardNeed help this questionarrow_forwardAverage leval of receivables?arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
- Fundamentals Of Financial Management, Concise Edi...FinanceISBN:9781337902571Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
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