Question

Spahr​, Inc. had beginning retained earnings of $ 125 comma 000 on January ​1, 2018. During the​ year, Spahr declared and paid $ 65 comma 000 of cash dividends and earned $ 90 comma 000 of net income. Prepare a statement of retained earnings for Spahr​, Inc. for the year ending December ​31, 2018.

Answer 1

Step-by-step explanation:

Preparation of the retained statement of earnings for the year ended 31 December 2018 is discussed below:

Spahr​, Inc.

Retained Earning statement

For the year ended December 31, 2018

Beginning retained earning balance $125,000

Add: Net income earned $90,000

Less: Cash Dividend paid -$65,000

Ending retained earning balance $150,000