Robert Coles Sun, Jan 13, 2013 @ 07:01 AM. If Internet memes have taught us anything, it's that there are plenty of ways to waste time, be it at work, at home on the couch, or on Facebook at a restaurant.
Retained earnings and stockholders' equity are decreased by a per-share cash dividend that is paid on common and preferred shares of stock, and not on shares of repurchased or treasury stock.
Note how December's net income was added to the December 1 retained earnings balance. In the accounting system, the $920 journal entry to close income summary to retained earnings accomplished the same purpose as adding net income to retained earnings on the statement of retained earnings.