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i don\'t understand the example table in chapter 13. can you explain step by ste

ID: 2363269 • Letter: I

Question

i don't understand the example table in chapter 13. can you explain step by step how to get retained earnings for dec 31. at sep 30 the company had common stock 10$ par value 420000. paid in capital in excess of par value common stock 90 000. retained earnings 300 000. oct 2. retained earnings 40 000 (dr) common dividens payable 40 000 (cr) oct 25 common dividend payables (dr) 40 000 cash 40 000 (cr) oct 31 retained earnings 83 000 (dr) common stock dividend distribution 40 000 (cr) paid-in capital of par value 43 000. nov 5 common stock 40000 common stock, 12$ par value. dec 1. memo-change the title of the common stock account to reflect the new par value of 4$ dec. 31 income summary 230 000. retained earnings 230 000. i need step by step and how to calculate i don't understand how to get it right?

Explanation / Answer

pls repost clearly