On 1 January 2011 the balance in Bend Co Pty Ltd's retained earnings account was $50 000.The balance on 31 December 2011 was $100 000.On 10 December 2011 dividends of $50 000 were declared payable on 31 January 2012.Assuming all closing entries have been completed the profit for 2011 was:

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Quizplus · Accepted Answer

The profit for 2011 is equal to the change in retained earnings, which is $100,000 - $50,000 = $50,000. The dividends declared in December 2011 will be paid in 2012 and therefore do not affect the profit for 2011.

On 1 January 2011 the Balance in Bend Co Pty