The following information was obtained from the Dumont Corporation\'s September
ID: 2405373 • Letter: T
Question
The following information was obtained from the Dumont Corporation's September financial statements. Determine the company's retained earnings on September 30.
Income Statement
Revenues
Expenses
$490,000
Net Income
$140,000
Statement of Retained Earnings
Beginning Balance
$410,000
Net Income
Subtotal
Dividends
$50,000
Ending Balance
?????????
Balance Sheet
Assets
Liabilities
$800,000
Stockholders' Equity
Common Stock
$900,000
Retained Earnings
?????????
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
$2,200,000
$500,000
$360,000
$440,000
$610,000
Income Statement
Revenues
Expenses
$490,000
Net Income
$140,000
Statement of Retained Earnings
Beginning Balance
$410,000
Net Income
Subtotal
Dividends
$50,000
Ending Balance
?????????
Balance Sheet
Assets
Liabilities
$800,000
Stockholders' Equity
Common Stock
$900,000
Retained Earnings
?????????
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
$2,200,000
Explanation / Answer
a.$500,000.
consider the statement of retained earnings:
$410,000
Cross check : By placing $500,000 as amount of retained earnings, the total liabilities and stock holders equity will be $2,200,000.
beginning balance$410,000
net income 140,000 sub total 550,000 less:dividends (50,000) ending balance 500,000Related Questions
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