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21 March, 06:40

Assume you are the president of Nuclear Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Accounts Payable$33,000 Accounts Receivable 59,950 Cash 13,500 Common Stock 63,030 Dividends 230 Equipment 32,000 Notes Payable 1,500 Operating Expenses 61,700 Other Expenses 9,000 Sales Revenue 87,300 Supplies 8,450 Prepare a statement of retained earnings for the year ended December 31.

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  1. 21 March, 08:28
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    Ending retained earnings is $ 16,370.00

    Explanation:

    Before preparing the statement of retained earnings for the year ended December 31, the net income for the current year needs to be ascertained.

    net income=sales revenue-operating expenses-other expenses

    net income=$87,300-$61,700-$9000=$ 16,600.00

    Statement of Retained earnings for the year ended 31 December:

    Beginning retained earnings $0

    net income $16,600

    dividends ($230)

    ending retained earnings $ 16,370.00
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