Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 3

Review exercise—calculate retained earnings From the following data, calculate the Retained Earnings balance as of December 31, 2010:

Retained earnings, December 31, 2011	$490,400
Net decrease in total assets during 2011	74,800
Net increase in accounts receivable in 2011	17,200
Dividends declared and paid in 2011	67,200
Proceeds from issuance of bonds during 2011	176,800
Net loss for the year ended December 31, 2011	46,000

Step 1 of 3

Calculate retained earnings