Eureka Company started business on January 1, 20X1. For 20X1, Eureka reported a net loss of $30,000 and paid cash dividends of $75,000. Note: The incorporation laws in the state in which Eureka is incorporated allow payment of dividends even when net income and retained earnings are negative. The following occurred during 20X2: Net LOSS for 20X2 was $80,000. Cash dividends paid during 20X2 were $45,000. 

What is Eureka's Retained Earnings balance at the end of 20X2?  Show your calculations.

Answer rating: 100% (QA)

To calculate Eureka Companys Retained Earnings balance at the end of 20X2 we need to consider the in... View the full answer