.png){kind=small}
Chat with us now!
Send Email!
What is an Earnings Statement?
Overview: An Earning Statement (Pay Slip) is a document given to an employee by an employer on or before payday. It is basically a record of what was earned and deducted from that particular pay period for an employee.
An earnings statement includes the following information:
- Gross Earnings
- Net Pay
- Deductions
- Hours Worked
- Overtime Pay
- YTD (Year-To-Date) Information
What is a Retained Earnings Statement?
A Retained Earnings Statement is a financial statement illustrating changes in the company’s retained earnings over two periods. In addition, this is a very important element of the financial statement, as it describes how the corporation issues profit to shareholders and thus also informs investors and management about what profits are reinvested in profit-making campaigns or reintroduced to shareholders.
Retained Earnings include the following information:
- Beginning Related Earnings
- Net Income
- Dividend Declared and Paid
- Ending Retained Earnings
How to Prepare a Statement of Retained Earnings?
A statement of retained earnings is an essential part of the financial data extracted from the company’s accounting records, and it requires a systematic computation of the retained earnings ending balance for a specific set period.
Summary SCL Recruitment 2020 To apply for these posts, there are steps involved, which are as follows:
- Resolve the beginning balance of the retained earnings: This can be found on the previous period’s balance sheet or the last period’s statement of retained earnings.
- Add the Net Income or Deduct the Net Loss: This information can be found on the company’s income statement for the reported period.
- Deduct any Dividends paid to Shareholders during the Period: This information can be found on the company’s cash flow statement or at the board of directors’ meeting.
- Calculate the Ending Balance of the Retained Earnings: This is the final balance of retained earnings for the period being reported and is calculated by adding the beginning balance of retained earnings to the net income (or deducting the net loss) and then removing any dividends paid to shareholders during the period.
- Produce a Statement of Retained Earnings: The statement should always begin with the beginning balance of retained earnings, followed by the net income or net loss for the period, the dividends paid to shareholders, and the ending balance of retained earnings.
The statement of retained earnings can be included as a separate financial statement or a section of the company’s balance sheet. It is generated quarterly or annually, which solely depends on the company’s reporting requirements.
Also, See: Workers’ Compensation Insurance Premium
