Henson Company began the year with retained earnings of $330,000. During the year, the company recorded revenues of $500,000, expenses of $380,000, and paid dividends of $40,000. What was Henson's retained earnings at the end of the year?
A) $490,000
B) $410,000
C) $790,000
D) $450,000

Question

Quizplus · Accepted Answer

Retained earnings = Beginning retained earnings + Net income - DividendsNet income = Revenues - ExpensesNet income = $500,000 - $380,000 = $120,000Retained earnings = $330,000 + $120,000 - $40,000 = $410,000

Henson Company Began the Year with Retained Earnings of $330,000