On January 1, Hannah\'s Pool Service Company had a retained earnings balance of
ID: 2415812 • Letter: O
Question
On January 1, Hannah's Pool Service Company had a retained earnings balance of $252,000. During the year Hannah's stockholders bought an additional $32,000 in common stock and received dividends of $52,200. For the year ended December 31 Hannah's Pool Service Company reported a net income of $73,200. Required: Prepare a retained earnings statement for the year ended December 31. Refer to the Instructions and the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Be sure to complete the statement heading. NEED HELP WITH RETAINED EARNING STATMENT
Explanation / Answer
Statement of retained earnings
retained earnings January 1 252000
Net income 73200
Dividend (52200)
add to retained earnings : Change in net income 21000
Retained earnings dec 31 273000