Question

Retained earnings, December 31, 2012 $311,900  

Cost of equipment purchased during 2013 30,000  
Net loss for the year ended December 31, 2013 4,550  
Dividends declared and paid in 2013 15,200  
Decrease in cash balance from January 1, 2013, to December 31, 2013 12,800  
Decrease in long-term debt in 2013 15,900  


Required:
From the above data, calculate the retained earnings balance as of December 31, 2013. (Negative amounts should be indicated by a minus sign.)

Answer 1

Retained earnings balance as of December 31, 2013

Particulars Amount ($)

Retained Earnings Dec 31, 2012 311,900

Less: Net Loss for the Year 4,550

Less: Dividend declared and paid in 2013 15,200

Retained Earnings Dec 31, 2013 $292,150