On February 1, 2019, the balance of the retained earnings account of Blue Power Corporation was $378,000. Revenues for February totaled $73,800, of which $69,000 was collected in cash. Expenses for February totaled $183,400, of which $151,200 was paid in cash. Dividends declared and paid during February were $16,800. Required: Calculate the retained earnings balance at February 28, 2019. (Amounts to be deducted should be indicated with a minus sign.)

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Business

Tommy Finley

23 July, 04:52

On February 1, 2019, the balance of the retained earnings account of Blue Power Corporation was $378,000. Revenues for February totaled $73,800, of which $69,000 was collected in cash. Expenses for February totaled $183,400, of which $151,200 was paid in cash. Dividends declared and paid during February were $16,800. Required: Calculate the retained earnings balance at February 28, 2019. (Amounts to be deducted should be indicated with a minus sign.)

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Young · Answer 1

The retained earnings balance at February 28, 2019 is $251,600

Explanation:

The computation of the ending balance of retained earning is shown below:

The ending balance of retained earning = Beginning balance of retained earnings - net loss - dividend paid

where,

Net loss = Expenses - Revenue

= $73,800 - $183,400

= $109,600

The other item values remain the same

Now put these values to the above formula

So, the value would equal to

= $378,000 - $109,600 - $16,800

= $251,600