Asked by Keyara Lewis on Jun 20, 2024
Verified
Larson Company ends its recent year of operations with $3,500,000 in retained earnings.During the year Larson's net income exceeded its dividend declarations by $200,000.Larson's dividend declarations were $25,000 greater than the dividend payments.
How much was Larson Company's beginning retained earnings?
Retained Earnings
The amount of net earnings left over for the company after it has paid out dividends to its shareholders.
Dividend Declarations
The announcement by a company's board of directors to pay a dividend to its shareholders, specifying the amount and date.
- Comprehend the fundamental concepts involved in crafting financial statements and how specific transactions influence these statements.
Verified Answer
TC
Tomeka ChurchJun 25, 2024
Final Answer :
Beginning retained earnings = $3,300,000 = Ending retained earnings ($3,500,000)minus the change in retained earnings during the year ($200,000).
The change in retained earnings during the year = Net income minus dividends declared,not dividends paid.
Net income minus dividends declared is provided as the amount of $200,000.
The change in retained earnings during the year = Net income minus dividends declared,not dividends paid.
Net income minus dividends declared is provided as the amount of $200,000.
Learning Objectives
- Comprehend the fundamental concepts involved in crafting financial statements and how specific transactions influence these statements.