On June 1 Acme Inc has Retained Earnings of 44784 In June th

On June 1 Acme Inc. has Retained Earnings of $44784. In June the firm sold $12415 in additional capital stock for cash. In June the firm obtained an interest free loan of $19269 from one of the stockholders. Revenues for June were $15758. Expenses for June were $11995 In June the company paid out a total of $1059 in dividends to its shareholders. What is the value of Retained Earnings on June 30?

Solution

revenue

15758

less expenses

11995

net income

3763

less dividend paid

1059

net income transferred to retained earning

2704

beginning balance of retained earning

44784

add net income

2704

retained earning at june 30

47488