Question

Wyler​, Inc. had beginning retained earnings of $ 115 comma 000 on January ​1, 2018. During the​ year, Wyler declared and paid $ 70 comma 000 of cash dividends and earned $ 100 comma 000 of net income. Prepare a statement of retained earnings for Wyler​, Inc. for the year ending December ​31, 2018.

Answer 1

$

Net income 100,000

Less: Dividend paid 70,000

Retained earnings for the year 30,000

Statement of Retained earnings for the year ended December 31, 2018

$

Retained earnings on January 1, 2018 115,000

Add: Retained earnings for the year 30,000

Retained earnings at December 31,2018 145,000

Step-by-step explanation:

In this case, we need to calculate the retained earnings for the year, which is net income minus dividend paid. Then, we will add the retained earnings for the year to retained earnings at the beginning of the year. This gives the retained earnings at the end of the year.