Coronado Industries began the year 2022 with retained earnings of $661000. During the year, the company sold additional shares of stock for $1011000, recorded revenues of $621000, expenses of $377000, and paid dividends of $137000. What was Coronado's retained earnings balance at the end of 2022

Question

Porter Harrison

Business

9 January, 13:41

Coronado Industries began the year 2022 with retained earnings of $661000. During the year, the company sold additional shares of stock for $1011000, recorded revenues of $621000, expenses of $377000, and paid dividends of $137000. What was Coronado's retained earnings balance at the end of 2022

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Dane King · Answer 1

The Coronado's Retaining Earnings Balance is at end of 2022 is $ 808 000

Explanation:

Retained Earnings at the end of the year is calculated by adding together The Retained Earning at the Beginning of the Period, the Distributive Profit for the year (Profit for the year after Interest and tax), then subtracting the dividends paid during the year.

From the question Retained Earnings at the Beginning of the year was provided at $661000.

The Distributive Profit needed a calculation. Revenue minus Expenses gives us profit. Expenses here include ALL trading, operating interest and tax expenses. This give is a Distributive Profit of $ 284000 ($621000-337000). The $1011000 is disregard in calculation of profit and only Revenues that match with expenses are regarded (Accrual Principle).

The dividend paid was provided for at $ 137000.

This the Retained Earnings figure at end of 2020 is $808000 (661000+284000-137000)