This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: $ 30,000 Retained Earnings 2,000 Total Stockholders’ Equity $ 32,000 Total Liabilities and Stockholders’ Equity $ 42,000 C) Determine the percentage of assets that were provided by retained earnings. How much cash is in the retained earnings account? Assets= Liabilities + Common Stock + Retained Earnings Retained Earnings = Assets – Liabilities – Common Stock Retained Earnings = $42,000 - $10,000 - $30,000 Retained Earnings = $2,000 Percentage of assets provided by retained earnings = Retained earnings/ Total assets Percentage of assets provided by retained earnings = $2,000/ $42,000 = 4.7% Retained earnings provide 4.7% of assets, and $2,000 is in cash. (1-18A) A) The balance in retained earnings account as of January 31 st , 2011 is $0. B) Retained earnings’ is an account. C) At the time expenses are recognized, the retained earnings account is formally recorded in the financial statements....
View Full Document
This document was uploaded on 10/19/2011.
- Spring '09