From the Data Given Below, Calculate the Retained Earnings Balance

question 27

Essay

From the data given below, calculate the Retained Earnings balance of December 31, 2019.
$\begin{array}{lr}\text { Retained earnings, December } 31,2020 & \$ 34,000 \\\text { Increase in total liabilities during } 2020 & 99,000 \\\text { Gain on the sale of buildings during } 2020 & 42,000 \\\text { Dividends declared and paid in } 2020 & 27,000 \\\text { Proceeds from sale of common stock in 2020 } & 96,000 \\ \text { Net income for the year ended December } 31,2020 & 123,000\end{array}$

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Definitions:

Pay System

The structure and methodology an organization uses to compensate its workers, encompassing salary, wages, bonuses, and benefits.

Performance-Based Pay

A compensation system where employees are paid based on their performance or achievements in their role, rather than receiving a fixed salary.

Productivity

The efficiency with which goods or services are produced, often measured as output per unit of input, like labor or resources.

Detrimental Effects

Negative impacts or outcomes that result from a particular action or policy.