Computing Ending Retained Earnings
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Please help with the following accounting problem.
For the following four cases, compute the ending amount of retained earnings. Provide step by step calculations. Caution: Not all of the items listed should be included in the computation of ending retained earnings.
Case A Case B Case C Case D
Cost of goods sold $ 60,000 $ 30,000 $60,000 $110,000
Interest expense 18,000 47,000 25,000 31,000
Cash 3,000 4,500 2,100 6,000
Retained earnings 50,000 15,000 31,000 70,000
Sales 100,000 150,000 70,000 200,000
Accounts payable 12,000 20,000 5,000 38,000
Rent revenue 5,000 1,000 12,000 10,000
Machinery 175,000 60,000 50,000 185,000
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Solution Summary
The following posting helps with an accounting problem. The solution helps compute the ending amounts of retained earnings. Step by step calculations are given for each problem.
Solution Preview
In every case, the ending retained earnings will equal the beginning retained earnings plus sales, plus ...
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