Question

Retained earnings, December 31, 2019 $ 347,600 Cost of buildings purchased during 2020 46,600 Net income for the year ended December 31, 2020 56,100 Dividends declared and paid in 2020 32,200 Increase in cash balance from January 1, 2020, to December 31, 2020 24,000 Increase in long-term debt in 2020 44,100 Required: From the above data, calculate the Retained Earnings balance as of December 31, 2020:

Answer 1

cool

Step-by-step explanation:

Answer 2

$371,500

Step-by-step explanation:

The retained earnings account represents the cumulative net income of an entity over the years after considering the dividend paid over the periods of existence.

The movement in the dividend account at the start and end of a given period is as

Opening balance + Net income - dividend declared and paid = closing balance. Hence , the Retained Earnings balance as of December 31, 2020

= $347,600 + $56,100 - $32,200

= $371,500