Question

Electronic Instruments had retained earnings of $350,000 at December​ 31, 2017. Net income for 2018 totaled $ 215 comma 000​, and dividends declared for 2018 were $ 90 comma 000. How much retained earnings should Electronic report at December

Answer 1

$475,000

Explanation:

We are asked to find the retained earnings for Electronic report at December 2018.

`\text{Retained earnings}=\text{Beginning period retained earnings + Net income/Loss - Cash dividends}`

Substitute the given values:

`\text{Retained earnings}=\$350,000+\$215,000-\$90,000`

`\text{Retained earnings}=\$475,000`

Therefore, the retained earnings of Electronic report at December 2018 would be $475,000.