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Relationship between assets and retained earnings
West Company was organized when it acquired $2,000 cash from the issue of common stock. During its first accounting period the company earned $800 of cash revenue and incurred $500 of cash expenses. Also, during the accounting period the company paid its owners a $200 cash dividend.
Required
a. Determine the ending amount of the retained earnings account.
b. As of the end of the accounting period, determine what percentage of total assets were provided by earnings.
(c) Where should a discount or premium appear in the financial statements? What about issue costs?
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project nbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspinitial investment
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