Gilkey Corporation began the year with retained earnings of $310000. During the year, the company issued $420000 of common stock, recorded expenses of $1200000, and paid dividends of $80000. If Gilkey's's ending retained earnings was $330000, what was the company's revenue for the year?

To find the company's revenue for the year, we can use the retained earnings formula:

\[
\text{Ending Retained Earnings} = \text{Beginning Retained Earnings} + \text{Revenue} - \text{Expenses} - \text{Dividends}
\]

Given:
- Beginning Retained Earnings = $310,000
- Ending Retained Earnings = $330,000
- Expenses = $1,200,000
- Dividends = $80,000
- Revenue = ?

Substitute the given values into the formula:

\[
330,000 = 310,000 + \text{Revenue} - 1,200,000 - 80,000
\]

Now, solve for Revenue:

\[
330,000 = 310,000 + \text{Revenue} - 1,280,000
\]

Simplifying:

\[
330,000 = 310,000 + \text{Revenue} - 1,280,000
\]

\[
330,000 - 310,000 = \text{Revenue} - 1,280,000
\]

\[
20,000 = \text{Revenue} - 1,280,000
\]

\[
\text{Revenue} = 20,000 + 1,280,000
\]

\[
\text{Revenue} = 1,300,000
\]

Thus, the company's revenue for the year was **$1,300,000**.

Would you like more details on how the calculation was performed, or do you have any other questions?

Here are 5 questions related to this problem:
1. How does issuing common stock affect the retained earnings statement?
2. What is the difference between net income and retained earnings?
3. How are dividends paid related to retained earnings?
4. What other financial statements can we derive from retained earnings changes?
5. How does the issuance of stock typically impact a company's balance sheet?

**Tip:** Always separate capital-related transactions (like issuing stock) from operational transactions (like revenues and expenses) when analyzing retained earnings changes.

Gilkey Corporation began the year with retained earnings of $310000. During the year, the company issued $420000 of common stock, recorded expenses of $1200000, and paid dividends of $80000. If Gilkey's ending retained earnings was $330000, what was the company's revenue for the year?

Learn how to calculate the revenue of Gilkey Corporation using the retained earnings formula. This problem covers key accounting concepts, including the calculation of ending retained earnings, incorporating expenses and dividends. Suitable for advanced high school students or those studying accounting/finance at the college level.

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