Explore BrainMass

Explore BrainMass

    Retained earnings

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The following information is based on 2006 account balances:

    Total reported income since incorporation $1,500,000
    Total cash dividends paid ($800,000)
    Cumulative effect of changes in accounting principle ($120,000)
    Total stock dividends distributed ($200,000)
    Correction of an error, recorded Jan 1 2006 $66,000

    What should be the balance of retained earnings at Dec 31, 2006?

    a)446,000
    b)500,000
    c)380,000
    d)566,000
    explain?

    © BrainMass Inc. brainmass.com June 3, 2020, 11:20 pm ad1c9bdddf
    https://brainmass.com/business/accounting/retained-earnings-reports-273969

    Solution Preview

    Retained earnings

    The following information is based on 2006 account balances:

    Total reported income since incorporation $1,500,000
    Total cash dividends paid ...

    Solution Summary

    The response provides steps to compute the Retained earnings.

    $2.19

    ADVERTISEMENT