Question

The following information has been taken from the ledger accounts of Kingbird Corporation. Total income since incorporation $343,000 Total cash dividends paid 57,000 Total value of stock dividends distributed 28,000 Gains on treasury stock transactions 17,000 Unamortized discount on bonds payable 29,000 Determine the current balance of retained earnings.

Answer 1

the current balance of retained earnings is $258,000

Step-by-step explanation:

The computation of the current balance of retained earnings is shown below:

= Total income - cash dividend paid - stock dividend paid

= $343,000 - $57,000 - $28,000

= $258,000

hence, the current balance of retained earnings is $258,000

We simply deduct the two items amount from the total income