Question

Please help find the dividens part, i can't figure it out:

Answer 1

Answer

• The correct figure for Dividends = $ 1,710. How to calculate/find it, is shown below, after the answer.

Retained Earnings Statement
For the month ended June 30 2017
Retained earnings June 1	$                               -
Add: Net Income	$                        3,700
	$                        3,700
Less: Dividends	$                        1,710 [see working below]
Retained earnings June 30	$                        1,990

• Working

Step 1: Prepare Trial balance from given information.
Step 2: Find the difference between debit and credit totals.
Step 3: Difference amount = Dividend amount.

Accounts title	Debit	Credit
Cash	$                   5,060
Accounts receivables	$                   4,250
Service revenue		$                 7,960
Supplies	$                   2,300
Advertising expense	$                      400
Equipment	$                26,460
Common Stock		$               22,410
Notes Payable		$               12,920
Accounts Payable		$                     750
Supplies expense	$                   1,100
maintenance expense	$                      700
utilities expenses	$                      200
Salaries & Wages expense	$                   1,860
TOTAL	$                42,330	$               44,040
Difference = Dividend amount	$                   1,710 [44040 – 42330]