whos smart enough 2 solve this?

[Pumpinglife]

Use the following to answer question 26:

Dent Company experienced the following transactions during 2004.

(1). Issued $3,000 of common stock to stockholders.
(2). Provided $1,200 of services on account.
(3). Incurred $800 of operating expenses on account.
(4). Collected $900 of cash from accounts receivable.
(5). Paid $750 cash on accounts payable.
(6). Paid a $50 cash dividend to stockholders.


26. The amount of retained earnings appearing on Dent Company's 2004 balance sheet is:
A) $ 100.
B) $ 350.
C) $ 400.
D) $3,350.

[Tech_N9ne]

its C

[muscle4lyfe20]

no way am i doin math on a weekend

[mickey mouse]

b)))

[tnel00]

It's C

You've got 1200 in sales (revenue) and 800 in expenses.

[Pumpinglife]

Originally Posted by mickey mouse

b)))

care to explain

[Pumpinglife]

Originally Posted by tnel00

It's C

You've got 1200 in sales (revenue) and 800 in expenses.

r u sure????

[orly68]

Originally Posted by Pumpinglife

Use the following to answer question 26:

Dent Company experienced the following transactions during 2004.

(1). Issued $3,000 of common stock to stockholders.
(2). Provided $1,200 of services on account.
(3). Incurred $800 of operating expenses on account.
(4). Collected $900 of cash from accounts receivable.
(5). Paid $750 cash on accounts payable.
(6). Paid a $50 cash dividend to stockholders.


26. The amount of retained earnings appearing on Dent Company's 2004 balance sheet is:
A) $ 100.
B) $ 350.
C) $ 400.
D) $3,350.

LMAO
what accounting are you taking >?

[tnel00]

(1). Issued $3,000 of common stock to stockholders.
(2). Provided $1,200 of services on account.
(3). Incurred $800 of operating expenses on account.
(4). Collected $900 of cash from accounts receivable.
(5). Paid $750 cash on accounts payable.
(6). Paid a $50 cash dividend to stockholders.

1) Common Stock is part of Stockholder's equity but not part of retained earnings, not needed for this question.
2) Journal entry would be a debit to AR, and a credit to Sales. Sales is a revenue account.
3) You've got 800 as an expense, as well as a liability to AP or NP (accounts or notes payable).
4) debit cash, credit AR, no change in assets, nor needed for this question.
5) Paid off a liability, again not needed for this question.
6) debit to dividends payable, credit to cash, again not needed.

All you have is 1200 in sales (revenue) and 800 in expenses. If there was a beginning balance you'd add the 400 to that, but since there doesn't appear to be, then the balance would be the difference in your revenues and expenses for the period.

[tnel00]

Originally Posted by orly68

LMAO
what accounting are you taking >?

uhh...sounds like financial (could be intermediate), which is the first (intermediate would be 3rd) accounting course an accounting major, or any other major would take.

[Pumpinglife]

Originally Posted by tnel00

(1). Issued $3,000 of common stock to stockholders.
(2). Provided $1,200 of services on account.
(3). Incurred $800 of operating expenses on account.
(4). Collected $900 of cash from accounts receivable.
(5). Paid $750 cash on accounts payable.
(6). Paid a $50 cash dividend to stockholders.

1) Common Stock is part of Stockholder's equity but not part of retained earnings, not needed for this question.
2) Journal entry would be a debit to AR, and a credit to Sales. Sales is a revenue account.
3) You've got 800 as an expense, as well as a liability to AP or NP (accounts or notes payable).
4) debit cash, credit AR, no change in assets, nor needed for this question.
5) Paid off a liability, again not needed for this question.
6) debit to dividends payable, credit to cash, again not needed.

All you have is 1200 in sales (revenue) and 800 in expenses. If there was a beginning balance you'd add the 400 to that, but since there doesn't appear to be, then the balance would be the difference in your revenues and expenses for the period.

wrong

[MuscleManxx]

whos smart anough not to do his HW

[mickey mouse]

i'm sticking to b

[tnel00]

It depends on what you are actually doing with that dividend. If you are declaring it then it will lower your retained earnings an additional $50. If you are paying it, then most likely (in the real world) you would have already declared it and set up a dividends payable account. If you are just paying it, then there would be no reduction to retained earnings, but instead a reduction to your liabilities. You can actually argue this either way, as you can most accounting questions.

[longerstronger]

The question says "Paid" a dividend. Accounting classes generally take this for granted and skip the declaring part unless it is expressly stated somewhere. Other than that, I agree with tnell00

[scxq]

the answer is obviously A. you must include (7) Corporate corruption. however you may be able to counter it with (8), Accounting fraud. either way capitalism prevails.