Homework Answers
Answer) D. An increase of $24000
Explanations:
Changes in Retained Earnings occur when a company makes profit or incurs loss because such profit/loss is transferred to Retained Earnings.
Changes in Retained Earnings also occur when a company declares dividends because dividends are declared out of Retained Earnings.
Changes in Retained Earnings = *Net Income(Profit) for the year - Dividends declared
= 25000 - 1000
= 24000 (Increase)
Net Income = Service Revenue - Total Expenses
= 230000 - 205000
= 25000
*Additional capital stock issued would not effect retained earnings because such stocks are recorded in separate accounts.
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1. Inventory 12/31/21 $65,000 Cost of Goods Sold $230,000 Sales Revenue 450,000 Selling Expenses 26,000 Interest...
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[REMOVED]
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[REMOVED]
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