Question

Marigold Corporation has retained earnings of $684,800 at January 1, 2020. Net income during 2020 was $1,690,600, and cash dividends declared and paid during 2020 totaled $84,200. Prepare a retained earnings statement for the year ended December 31, 2020

Answer 1

Step-by-step explanation:

The preparation of the retained earnings statement for the year ended December 31, 2020 is presented below:

Marigold Corporation

Retained Earning statement

For the year ended December 31, 2020

Beginning balance of retained earning $684,800

Add: Net income $1,690,600

Less: Cash Dividend paid -$84,200

Ending balance of retained earning $2,291,200