Answer to Question #107033 in Accounting for Alyssa Nowak

Question

The following account balances are taken from the books of Country Club on 31 December 2017. Revenues and expenses are for the year ended 31 December 2017. The retained profits balance is as at 1 January 2017.



Account

Value ($)

Accounts Receivable

29806

Accounts Payable

25280

Promotional Expense

54742

Cash

5028.2

Food Sales

15611

Cost of food sold

13798

Dividend payments

8209

Electricity Expense

6432

Furniture and fittings

42,500

Inventory

22,500

Land and buildings

75,000

Bank loan payable

43,750

Equipment

51,250

Rent expense

40546

Retained profits (1 January 2017)

74022

Share capital

75,000

Membership revenue

103263

Calculate the retained earnings for the year ended 31 December 2017.

Answer 1

RP_(31.12.2017) = RP_(1.1.2017) + Net profit – Dividends

Net profit = Revenue - Expense

Net profit = (15611 + 103263) - (40546 +13798 + 54742 + 6432) = 3356

RP_(31.12.2017) = 74022 + Net profit – Dividends

RP_(31.12.2017) = 74022 + 3356 - 8209 = 69169