Sing Tao inc.began operations on June 2, 2011.During June, Sing Tao sold ordinary shares for HK$11,450,000, earned revenue of HK$2,020,000, incurred expenses of HK$1,030,000, and paid dividends of HK$30,000.Retained earnings at June 30, 2011

Question

Quizplus · Accepted Answer

Retained earnings are calculated as the net income minus dividends. Net income is revenue minus expenses, which is HK$2,020,000 - HK$1,030,000 = HK$990,000. After paying dividends of HK$30,000, retained earnings are HK$990,000 - HK$30,000 = HK$960,000.

Sing Tao Inc