Question

Xavier Heffner owns and operates Heffner Advertising Services. On January 1, 2018, Retained Earnings had a balance of $180,650. During the year, Xavier invested an additional $39,700 in exchange for common stock and $23,500 in dividends were paid. For the year ended December 31, 2018, Heffner Advertising Services reported a net income of $19,500.


Prepare a retained earnings statement for the year ended December 31, 2018.


Heffner Advertising Services

Retained Earnings Statement

For the Year Ended December 31, 2018

Answer 1

Answer:

$ 184,650

Explanation:

Heffner Advertising Services Retained Earnings Statement For the Year Ended December 31, 2018

Retained earnings, January 1st, 2018 $180,650

Net Income$ 19,500

Dividends($23,500)

Change in retained earnings

($19,500- $23,500) $ 4,000

Retained earnings, December 31st, 2018

($180,650+$4,000) $ 184,650

Therefore Heffner Advertising Services Retained Earnings Statement For the Year Ended December 31, 2018 will be $184,650