Abroard, LLC is preparing the company\'s statement of cash flows for the fiscal
ID: 2575119 • Letter: A
Question
Abroard, LLC is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $310,000 Cash dividends declared for the year $35,000 Proceeds from the sale of equipment $85,000 Gain on the sale of equipment $4,500 Cash dividends payable at the beginning of the year $22,000 Cash dividends payable at the end of the year $30,000 Net income for the year $98,000 What is the ending balance in retained earnings?
Explanation / Answer
Amount Amount Opening Retained Earnings = $ 3,10,000 Add: Gain on sales of Equipment $ 4,500 Net Income $ 98,000 1,02,500.00 Less: Less : Cash Dividend Declared $ 35,000 Closing Balance of Retained Eaenings = 3,77,500.00 Notes: 1) Proceesds from sale of the equipment have the no empact on the retaiend earning 2) Dividend payable as opening and closing also no impact because the retaiened earning will be debited at the time of dividend declared