Tiptoe Shoes, had annual revenues of $193,000, expenses of $107,700, and paid dividends of $21,200 during the current year. The retained earnings account before closing had a balance of $305,000. The ending retained earnings balance after closing is:

The ending retained earnings balance after closing is : $369,100

Explanation:

The Retained Earnings include an adjustment of profit for the year and dividend paid to the opening balance.

The Calculation of closing balance is as follows :

Opening Balance                                                  $305,000

Add Profit for the year ( $193,000 - $107,700)      $85,300

Less Dividends paid                                               ($21,200)

Closing Balance                                                     $369,100

Conclusion :

The ending retained earnings balance after closing is : $369,100

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