Moss Company has provided the following data:
Posted: Sat Aug 07, 2021 7:21 am
2019 revenues were $87,500.
2019 expenses were $43,900.
Dividends declared and paid by Moss during 2019 totaled $15,700.
Total assets on December 31, 2019 were $227,000.
Total stockholders' equity on December 31, 2019 was $133,000.
Common stock on December 31, 2019 was $93,000.
Calculate the beginning retained earnings balance.
Answer: Stockholders' equity ($133,000) = Common stock ($93,000) + Ending retained
earnings (X).
Solve for ending retained earnings = $40,000.
Beginning retained earnings = $12,100 = Ending retained earnings ($40,000) - Net income
(Revenues $87,500 - Expenses $43,900) + Dividends ($15,700).
2019 expenses were $43,900.
Dividends declared and paid by Moss during 2019 totaled $15,700.
Total assets on December 31, 2019 were $227,000.
Total stockholders' equity on December 31, 2019 was $133,000.
Common stock on December 31, 2019 was $93,000.
Calculate the beginning retained earnings balance.
Answer: Stockholders' equity ($133,000) = Common stock ($93,000) + Ending retained
earnings (X).
Solve for ending retained earnings = $40,000.
Beginning retained earnings = $12,100 = Ending retained earnings ($40,000) - Net income
(Revenues $87,500 - Expenses $43,900) + Dividends ($15,700).