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Denmark Inc

question 100

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Denmark Inc. is preparing a statement of stockholders' equity for 2014. On January 1, 2014, Denmark started the year with a $100,000 credit balance in its retained earnings account. During 2014, the company earned net income of $70,000 and declared dividends of $10,000. Also, the company received cash of $15,000 as an additional investment by its owners. What is the balance in retained earnings on December 31, 2014?


Definitions:

Total Cost Transferred

The cumulative cost relocated from one department to another or from production to finished goods inventory.

Processing Department

A specific location or unit within a manufacturing facility where a distinct process or series of processes occur for the production of goods.

Equivalent Unit

A measure used in cost accounting to express the amount of work done on partially finished goods as an equivalent number of fully finished units.

Processing Department

A division within a manufacturing facility where a specific type of production activity or process is carried out.

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