Purchase Solution

This post addresses the level of retained earnings.

Not what you're looking for?

Ask Custom Question

Big Golf Corp paid taxes of $ 90,000 and purchased equipment worth $175,000 during the year that ended June 30, 2008. The firm had net income of $500,000 during the year ended June 30, 2008. After paying out $95,000 in dividends, the balance went into retained earnings. If the firm's total retained earnings were $900,000, what was the level of retained earnings on its balance sheet on July 1, 2007?

Purchase this Solution
Solution Summary

The solution provides an explanation with all calculations for Big Golf Corp. and determines the exact amount of the level of retained earnings on its balance sheet.

Solution Preview

Retained earnings = 900,000

Less: net income to determine level of retained ...

Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Introduction to Finance

This quiz test introductory finance topics.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

View More Free Quizzes
Related BrainMass Solutions

  • Cajon Company

    Earnings 1,262 (4) Apr 30 Retained Earnings 3,650 Dividends 3,650 (b) Post the closing entries to Income Summary and Retained Earnings.

  • Post Company purchased a percent investment in Stake Company.

    On January 1, 20X5, Post and Stake had retained earnings of $500,000 and $100,000, respectively. During 20X5, Post had net income of $200,000, which included its equity in Stakeâ??

  • How the Accounting Cycle is Completed

    This solution is comprised of one accounting problem that deals with how to prepare an income statement, a retained earnings statement, a classified balance sheet, closing entries, posting the closing entries, ruling and balancing the accounts, and how

  • Long-Term Financing/ Dividend Policy and Retained Earnings

    Current level of earnings as well as the current balance in the retained earnings does not provide any information to the policy makers to help them decide the dividend policy.

  • Post entries, prepare a retained earnings & stockholders' equity

    277313 Post entries, prepare a retained earnings & stockholders' equity The stockholders' equity accounts of Hashmi Company at January 1, 2008, are as follows.

  • Journal Entries and financial statements

    Post the closing entries Income Summary and Retained Earnings. Use T Accounts Prepare a post closing trial balance at April 30. Please see the attached file.

  • Financial Accounting

    This solution is comprised of a detailed explanation of the various aspects of Financial Accounting, for example preparation of Classified Balance Sheet, Income Statement, Post closing Trial Balance, etc. (in EXCEL).

  • Trial balance columns and worksheet

    (b) Post the closing entries to Income Summary and Retained Earnings. Use T accounts. (c) Prepare a post-closing trial balance at April 30. ANSWERS Please see attached file for answers.

  • The cost of equity for retained earnings based on DCF

    This post shows how to calculate the cost of equity for retained earning based on DCF.

View More Related Solutions