Does the Retained Earnings account that appears in the balance sheet credit column of a work sheet reflect the beginning or the ending balance in the account? Explain
The beginning balance in the Retained Earnings account is entered initially on the work sheet on the unadjusted trial balance and is spread to the balance sheet credit column of the work sheet. The reason the unadjusted or beginning balance is entered in the balance sheet credit column is that the net income of the period and any dividends declared are entered in the balance sheet columns also. Thus, the balance sheet columns contain all three amounts: the beginning retained earnings balance, the net income, and any dividends.
You might also like to view...
Define strategic positioning. Explain the three principles that underlie strategic positioning.
What will be an ideal response?
Corporate strategy is formulated by ______.
a. the organization’s top managers b. the entire organization c. third-party consultants d. people in charge of marketing and manufacturing
Having a common goal that both the leader and followers agree on is central to which ethical leadership principle?
A. serves others B. builds community C. shows JUSTICE D. respects others
Email and memos differ from letters in that they are:
a. written to employees within a company. b. less formal in tone and formatting. c. subject to less grammatical scrutiny. d. more formal in tone.