Question

For Year 1, Nnabue Company's year-end balance sheet lists $3,286,421 in ending Retained Earnings. During Year 1, Nnabue's net income exceeded its dividend declarations by $175,819. Nnabue's dividend declarations in Year 1 were $38,602. Nnabue also sold $32,000 of stock in Year 1. Dividend payments were $14,000. How much was Nnabue's beginning retained earnings

Answer 1

See below

Step-by-step explanation:

Statement showing the beginning retained earnings

Ending retained earnings balance

$3,286,421

Add:

Dividend declared

$38,602

Less;.

Income during the year

($175,819 + $38,602)

($214,421)

Beginning retained earnings

$3,110,602

Therefore, Nnabue's beginning retained earnings is $3,110,602