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These questions were given by a lecturer who taught me FA I just wanted to go over the exercise questions he had given to us, he didn’t give us the answers, so now I’m looking back over them, and I’m in a bit of a pickle…. Thanks for the help though.
And for this question, the answer I have is $4,994,600, is that correct?
The following balances have been extracted from Sara’s trial balance at 31 December 20X6:
Debit Credit
Retained earnings at 1 January 20×6 $4,695,600
10% Loan notes issued in 20×3 $1,300,000
Loan note interest paid $65,000
Profit for the year ended 31 Dec 20×6 is $520,000. Income tax for the year has been estimated at $156,000.
What is the figure for retained earnings in Sara’s statement of financial position as at 31 Dec 20×6?
$4,929,600
$4,994,600
$5,059,600
$5,215,600