Question

The following information has been taken from the ledger accounts of Kingbird Corporation. Total income since incorporation$326,000 Total cash dividends paid61,000 Total value of stock dividends distributed30,000 Gains on treasury stock transactions18,000 Unamortized discount on bonds payable33,000 Determine the current balance of retained earnings.

Answer 1

$235,000

Step-by-step explanation:

The computation of the current balance of retained earnings is shown below:

= Total income since incorporation - Total cash dividends paid - Total value of stock dividends distributed

= $326,000 - $61,000 - $30,000

= $235,000

As we know that

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

We applied the same.