Answered

IDNLearn.com is your go-to platform for finding reliable answers quickly. Our experts provide accurate and detailed responses to help you navigate any topic or issue with confidence.

What’s the formula for the statement of retained earnings and can someone please tell me????? I have an accounting test next week and I need helpppp asapppppppp

Sagot :

Nepalieducationidn

Answer:

Current Retained Earnings + Profit/Loss – Dividends = Retained Earnings

Step-by-step explanation:

Let’s say your company went into business on January 3, 2022. Your retained earnings account on January 3, 2022, will read $0 because you have no earnings to retain.

Now let’s say that in January you earn $5,000 in net income (from your income statement) and don’t issue any dividends.

That means that on February 3, your company’s retained earnings will be $5,000:

Current retained earnings + Net income - Dividends = Retained earnings

$0 + $5,000 - $0 = $5,000

This makes sense: you earned $5,000 in profits and retained all of them.

We are happy to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Your questions deserve reliable answers. Thanks for visiting IDNLearn.com, and see you again soon for more helpful information.