RETAINED EARNINGS. At the end of 19x8, Sherwood Company had retained earnings of $21,240. During 19x9 Sherwood
Question:
RETAINED EARNINGS. At the end of 19x8, Sherwood Company had retained earnings of $21,240. During 19x9 Sherwood had revenues of $831,400 and expenses of
$792,100 and paid cash dividends in the amount of $11,500.
REQUIRED:
Determine the amount of Sherwood’s retained earnings at December 31, 19x9.
E1-46, EFFECT OF EVENTS ON NET INCOME. What effect does each of the following transactions have on the net income (revenues, expenses) of a business?
a) The business sells services to a customer for cash.
b) The business sells services to a customer on credit.
c) The business collects cash from a credit customer.
d) The business purchases office supplies on credit.
e) The office supplies purchased in d are used.
f) An owner of the business invests additional cash in the firm.
g) The business borrows cash from a bank.
Step by Step Answer:
