As of December 31, 2010, Thomas Company had total assets of $156,000, total liabilities of $85,600, and

Question:

As of December 31, 2010, Thomas Company had total assets of $156,000, total liabilities of $85,600, and common stock of $52,400. During 2011 Thomas earned $36,000 of cash revenue, paid $20,000 for cash expenses, and paid a $2,000 cash dividend to the stockholders.

Required

a. Determine the amount of retained earnings as of December 31, 2010, after closing.

b. Determine the amount of net income earned in 2011.

c. Determine the amount of retained earnings as of December 31, 2011, after closing.

d. Determine the amount of cash that is in the retained earnings account as of December 31,

2011.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...