The income statement for Hudson Company reported net income of $345,000 for the year ended December 31 before considering the following:

◉During the year the company purchased trading securities.
◉At year end, the fair value of the investment portfolio was $23,000 less than cost.
◉The balance of Retained Earnings was $823,000 on January 1.
◉Hudson Company paid $43,000 in cash dividends during the year.

Calculate the balance of Retained Earnings on December 31.

Question

The income statement for Hudson Company reported net income of $345,000 for the year ended December 31 before considering the following:

◉During the year the company purchased trading securities.
◉At year end, the fair value of the investment portfolio was $23,000 less than cost. 
◉The balance of Retained Earnings was $823,000 on January 1.
◉Hudson Company paid $43,000 in cash dividends during the year.

Calculate the balance of Retained Earnings on December 31.

Quizplus · Accepted Answer

The Answer of 	The income statement for Hudson Company reported net income of $345,000 for the year ended December 31 before considering the following:

◉During the year the company purchased trading securities.
◉At year end, the fair value of the investment portfolio was $23,000 less than cost. 
◉The balance of Retained Earnings was $823,000 on January 1.
◉Hudson Company paid $43,000 in cash dividends during the year.

Calculate the balance of Retained Earnings on December 31.

The Income Statement for Hudson Company Reported Net Income of $345,000