Retained Earnings: Accounting Help Pls?
Question:
Definition of Retained Earnings
The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. Calculated by adding net income to (or subtracting any net losses from) beginning retained earnings and subtracting any dividends paid to shareholders.
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What is the amount of retained earnings at the beginning of 2006?
Info:
X Company had assets of 300, liabilities of 150, common stock of 50. They earned 400 of revenue, incurred expenses of 250, and pd dividends of 100.
Answer:
definitions for Retained earnings
The accumulated profits of a company. These may or may not be reinvested in the business.
earnings=400
expenses and dividend=350
retained earnings is 50
good question
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