At the end of 2011 retained earnings for the Bisk Company wa

At the end of 2011, retained earnings for the Bisk Company was $2,350. Revenue earned by the company in 2011 was $2,450, expenses paid during the period were $1,160, and dividends paid during the period were $560. Based on this information alone, retained earnings at the beginning of 2011 was

Solution

Net Income :Revenue -expense

           = 2450-1160

            = 1290

Retained earning at end =Retained earning at beginning + Net income -dividend

2350 =RE b + 1290-560

RE b = 2350+560-1290

         = 1620