For Year 2,the Sacramento Corporation had beginning and ending Retained Earnings balances of $208,054 and $231,012,respectively.Also during Year 2,the board of directors declared cash dividends of $29,000,which were paid during Year 2.The board also declared a stock dividend,which was issued and required a transfer in the amount of $16,000 to paid-in capital.Total expenses during Year 2 were $32,916.Based on this information,what was the amount of total revenue for Year 2?

Question

Quizplus · Accepted Answer

Ending retained earnings = Beginning retained earnings + Net income - Dividends
$231,012 = $208,054 + Net income - ($29,000 + $16,000)
Net income = $231,012 - $208,054 + $45,000 = $67,958
Net income of $67,958 = Revenues (the unknown)?- Expenses of $32,916
Revenues = $67,958 + $32,916 = $100,874

For Year 2,the Sacramento Corporation Had Beginning and Ending Retained