Tiptoe shoes, had annual revenues of $185,000, expenses of $103,700, and paid dividends of $18,000 during the current year. The retained earnings account before closing had a balance of $297,000. The ending retained earnings balance after closing is:

Question

Mauricio Morse

Business

28 August, 22:59

Tiptoe shoes, had annual revenues of $185,000, expenses of $103,700, and paid dividends of $18,000 during the current year. The retained earnings account before closing had a balance of $297,000. The ending retained earnings balance after closing is:

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Makayla Molina · Answer 1

Calculation of ending retained earnings balance after closing:

The balance in ending retained earnings after closing can be calculated as follows:

Balance in retained earnings account before closing $297,000

Add: Revenues $185,000

Less: Expenses $103,700

Less: Dividends $18,000

Ending retained earnings balance after closing = $360,300

Hence, The balance in ending retained earnings after closing is $360,300