FRAME 10-12 - FRAME10 SummaryofTransactions...

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FRAME 10 Summary of Transactions Stockholders Equity Retained earnings (affected by either:) Expense Revenue transactions FRAME 11 The Statement Of Retained Earnings Purpose: to explain the changes in retained earnings that occurred between two  statements of financial position dates Usually: Addition of net earnings (or deduction of net loss) Deduction of dividends Dividends  Are means by which a corporation rewards its stockholders for providing it with  capital Effects: of cash dividend transaction Reduce cash paid out Earning have no longer been retained but have been passed on to stockholders Revenues – expenses = net earnings or net loss Setting up Retained Earnings Retained earnings (from the period before) Net earnings (from this current period) Add these two Then: that price subtract dividends
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= retained earnings RE (period before) + NE (current)=(this total)-Dividends = RE
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FRAME 10-12 - FRAME10 SummaryofTransactions...

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