Question

need helpnwith this retained earnings

3 of 6 Chapter 04 Homework - Statement of Retained Earnings Exercise 4-14 Statement of retained earnings with PPA Tim Mattke. Company began operations in 2018 and adopted weighted-average method for inventory. In 2020, in accordance with other companies in its industry, Tim Mattke changed its inventory policy to FIFO. Financial statement data is as follows. Pretax Income Weighted Income Tax Dividends Year Average FIFO Rate Declared 2018 170.000 395,000 20% $0 2019 390,000 430,000 100,000 2020 410,000 450,000 20% 80,000 20% Instructions: Prepare a statement of retained earnings for the current year. 3 of 6 752 words Focus lili

Answer 1

Tim Mattke Company

Statement of Retained earnings

For the year 2020

Retained earnings, Beginning	$       560,000
Add: Net income after tax	$       360,000
Subtotal	$       920,000
(Less): Dividends	$       (80,000)
Retained earnings, Ending	$       840,000

.

Sl No.	Particulars	2018	2019	2020
a	Beginning Balance of Retained Earnings	$                      -	$             316,000	$         560,000
b	Pretax Income as per FIFO	$          395,000	$             430,000	$         450,000
c	Income Tax @20% (b* 20%)	$          (79,000)	$             (86,000)	$         (90,000)
d	Net Income After tax(b-c)	$          316,000	$             344,000	$         360,000
e	Dividend Declared	$                      -	$           (100,000)	$         (80,000)
f	Closing Balance of Retained Earnings(a+d-e)	$          316,000	$             560,000	$         840,000