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At September 1, 2022, Pharoah Company reported Retained Earnings of $524520. During the month, Pharoah generated revenues of $74400, incurred expenses of $44640, purchased equipment for $18600 and paid dividends of $7440. What is the balance in Retained Earnings at September 30, 2022?

Respuesta :

Answer:

$398,040

Explanation:

The computation of the balance in Retained Earnings at September 30, 2022 is shown below:

= Retained earnings balance on September 1, 2022 + revenues generated - expenses incurred - dividend paid

= $524,520 + $74,400 - $44,640 - $7,440

= $398,040

The purchase of equipment is not consider for calculating the ending retained earnings balance.

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