Rolf Corporation reported the following data for the period end: Earnings per share, $6.00; Retained Earnings, $54,000; Revenues, $150,000; Capital Stock, $30,000; Expenses, $129,000; Dividends, $24,000. With this information, determine retained earnings for the prior period.

Question

Quizplus · Accepted Answer

The change in retained earnings is calculated as: Prior Retained Earnings + Net Income - Dividends = Current Retained Earnings. Net Income = Revenues - Expenses = $150,000 - $129,000 = $21,000. Therefore, Prior Retained Earnings = $54,000 - $21,000 + $24,000 = $57,000.

Rolf Corporation Reported the Following Data for the Period End