Spahr , Inc. had beginning retained earnings of $ 125 comma 000 on January 1, 2018. During the year, Spahr declared and paid $ 65 comma 000 of cash dividends and earned $ 90 comma 000 of net income. Prepare a statement of retained earnings for Spahr , Inc. for the year ending December 31, 2018.

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Business

Diya Wilkerson

12 July, 02:45

Spahr , Inc. had beginning retained earnings of $ 125 comma 000 on January 1, 2018. During the year, Spahr declared and paid $ 65 comma 000 of cash dividends and earned $ 90 comma 000 of net income. Prepare a statement of retained earnings for Spahr , Inc. for the year ending December 31, 2018.

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Abril Guerrero · Answer 1

Preparation of the retained statement of earnings for the year ended 31 December 2018 is discussed below:

Spahr , Inc.

Retained Earning statement

For the year ended December 31, 2018

Beginning retained earning balance $125,000

Add: Net income earned $90,000

Less: Cash Dividend paid - $65,000

Ending retained earning balance $150,000