Pinson Company began the year 2022 with retained earnings of $670,000.During the year, the company sold additional shares of stock for $1,000,000, recorded revenues of $600,000, expenses of $380,000, and paid dividends of $140,000.What was Pinson's retained earnings balance at the end of 2022?
A)$1,030,000
B)$750,000
C)$1,130,000
D)$600,000

Question

Quizplus · Accepted Answer

The retained earnings at the end of the year is calculated as: Beginning retained earnings + Net income - Dividends. Net income is revenues minus expenses. So, $670,000 + ($600,000 - $380,000) - $140,000 = $750,000.

Pinson Company Began the Year 2022 with Retained Earnings of $670,000.During