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28 July, 09:21

For the year ending December 31, 2020, Splish Brothers Inc. reports net income $133,000 and cash dividends $90,000. Determine the balance in retained earnings at December 31 assuming the balance in retained earnings on January 1, 2020, was $230,000. (List items that increase retained earnings first.) Splish Brothers Inc. Retained Earnings Statement December 31, 2020 Balance, January 1 $ Less : Net Income / (Loss) Less : Dividends Balance, December 31 $

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  1. 28 July, 09:32
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    Therefore retained earnings at December 31 is $273,000

    Explanation:

    Items that increase retail earnings include:

    Beginning balance

    Net income

    Cash dividends

    Beginning balance as at January 1,2020 = $ 230,000

    Net income = $ 133,000

    Cash dividends = ($90,000)

    Therefore, retained earnings = Beginning balance + Net income - Cash dividends

    = $230,000 + $133,000 - $90,000

    = $ 273,000
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