As of January 1, Retained Earnings had a credit balance of

$61,100

. During the year, dividends totaled

$1,600

, and the business incurred a net loss of

$85,500

.\ a. Compute the balance of Retained Earnings as of the end of the year.\ Debit (negative) balance

$

,x

.\ b. Assuming that there have been no recording errors, will the balance sheet prepared at December 31 balance?\ Feedback\ Check My Work\ a. Set up a T account for the retained earnings account. Retained Earnings accounts have normal credit balances. Net income, net losses an dividends are all adjustments to retained earnings.\ b. Each properly recorded transaction that affects retained earnings must maintain the double-entry accounting system and the equality of the accounting equation: Assets = Liabilities + Stockholders' Equity.

As of January 1, Retained Earnings had a credit balance of $61,100. During the year, dividends totaled $1,600, and the business incurred a net loss of $85,500. a. Compute the balance of Retained Earnings as of the end of the year. Debit (negative) balance $ 61,100 X. b. Assuming that there have been no recording errors, will the balance sheet prepared at December 31 balance? Yes Feedback Check My Work a. Set up a T account for the retained earnings account. Retained Earnings accounts have normal credit balances. Net income, net losses and dividends are all adjustments to retained earnings. b. Each properly recorded transaction that affects retained earnings must maintain the double-entry accounting system and the equality of the accounting equation: Assets = Liabilities + Stockholders' Equity.