Retained Earnings Statement Notes

Retained Earnings Statement

 

This is a statement that identifies additional financial changes in retained earnings from one accounting period to the next. (In other words, it's a cumulative process over the life of the business).

 

Example:

 

Year 1 RE = 1,000,000

Year 2 RE = 750,000

Total RE = 1,750,000

 

Beginning RE (Retained Earnings) + Net Income – Dividends = RE

 

Retained Earnings Statement Format:

 

 

Company Name

Retained Earnings

For the Year Ended Dec 31, XXXX

 

Beginning Retained Earnings+Net Income-Dividends = Ending Retained Earnings Dec 31, XXXX

 

So it would look like this:

 

Joon Kang Inc.

Retained Earnings

For the Year Ended Oct 31, 2009

 

Beginning Retained Earnings+Net Income-Dividends = Ending Retained Earnings Oct 31, 2009

 

If you noticed in the example I used the Fiscal Year and in the format example, I used the calendar year

 

Hope this was a little helpful

 

Joon