Question

The following information has been taken from the ledger accounts of Skysong Corporation. Total income since incorporation $289,000 Total cash dividends paid 57,000 Total value of stock dividends distributed 33,000 Gains on treasury stock transactions 18,000 Unamortized discount on bonds payable 32,000 Determine the current balance of retained earnings.

Answer 1

$199,000

Step-by-step explanation:

Total Dividend Distributed = Cash Dividend + Stock Dividend

Total Dividend Distributed = $57,000 + $33,000

Total Dividend Distributed = $90,000

Retained Earnings = Total Income since Incorporation - Total Dividend Distributed

Retained Earnings = $289,000 - $90,000

Retained Earnings = $199,000