Ask Question
8 September, 01:39

If service revenue is $260,000, total expenses are $175,000, additional capital stock issued of $13,000 and dividends declared are $4,000, what is the change in retained earnings as a result of the closing process?

+3
Answers (1)
  1. 8 September, 03:22
    0
    Increase by $81,000

    Explanation:

    Data provided in the question:

    Service revenue = $260,000

    Total expenses = $175,000

    Additional capital stock issued = $13,000

    Dividends declared = $4,000

    Now,

    The change in retained earnings = Revenue - Expenses - Dividends declared

    = $260,000 - $175,000 - $4,000

    = $81,000

    Hence,

    Increase by $81,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If service revenue is $260,000, total expenses are $175,000, additional capital stock issued of $13,000 and dividends declared are $4,000, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers