J&C, Inc., had the following Net Income (Loss) from 2010 –2013. Determine their Ending...

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Accounting

J&C, Inc., had the following Net Income (Loss) from 2010 –2013. Determine their Ending Retained Earnings amount for eachyear.
K&L, Inc.
(In Millions)
Year
Net
Income (Loss)
Dividends
Ending
Retained
Earnings
2010
$10.50
$5.50
$33.65
27.
2011
$6.75
$4.95
28.
2012
($0.20)
$3.25
29.
2013
$8.25
$6.15

Answer & Explanation Solved by verified expert

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Complete chart

K&L, Inc.
(In Millions)
Year		Net	Dividends	Ending
		Income (Loss)		Retained
				Earnings
	2010	$ 10.50	$5.50	$ 33.65
27	2011	$ 6.75	$4.95	$ 35.45
28	2012	$ (0.20)	$3.25	$ 32.00
29	2013	$ 8.25	$6.15	$ 34.10

Year	Beginning Balance of retained Earnings (A)	Net Income (Loss) During the year (B)	Dividends (C )	Ending Balance of Retained Earnings (A+B-C)

2011	$ 33.65	$ 6.75	$ 4.95	$ 35.45
2012	$ 35.45	$ (0.20)	$ 3.25	$ 32.00
2013	$ 32.00	$ 8.25	$ 6.15	$ 34.10

Explanation

Profits earned during a period are added to the retained earnings. While on the other hand Dividends are paid out of retained earnings hence dividends reduces retained earnings balance.

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Transcribed Image Text

In: AccountingJ&C, Inc., had the following Net Income (Loss) from 2010 –2013. Determine their Ending Retained...J&C, Inc., had the following Net Income (Loss) from 2010 –2013. Determine their Ending Retained Earnings amount for eachyear.K&L, Inc.(In Millions)YearNetIncome (Loss)DividendsEndingRetainedEarnings2010$10.50$5.50$33.6527.2011$6.75$4.9528.2012($0.20)$3.2529.2013$8.25$6.15

K&L, Inc. (In Millions)
Year		Net Income (Loss)	Dividends	Ending Retained Earnings
	2010	$10.50	$5.50	$33.65
27.	2011	$6.75	$4.95
28.	2012	($0.20)	$3.25
29.	2013	$8.25	$6.15