Turner Company had a retained earnings account balance of $560,200 at January 1, 2012. During 2012, the company has revenues of $380,000, operating expenses of $296,400, Non-operating expenses of $28,000, and declared (on December 1) a dividend of $25,000 payable on February 1, 2013. Near the end of 2012, the company purchased a new building paying cash down of $400,000 and entering into a note payable for the balance of $360,000. What was the company's ending retained earnings account balance on December 31, 2012?

Respuesta :

Answer:

The total balance of retained earnings account on December 31 $590.800

Explanation:

Assets  

Cash  $575.800  

Building  $400.000  

TOTAL ASSETS   $975.800  

Liabilities  

Dividends Payable   $25.000  

Notes Payable   $360.000  

TOTAL LIABILITIES   $385.000  

Equity  

Retained Earnings   $590.800  

TOTAL EQUITY   $590.800  

Income Statement

Sales  $380.000  

Salaries Expenses -$296.400  

Miscellaneous Expenses -$28.000  

Net Income   $55.600