Mica inc.began operations in October, 2011.During October, Mica sold ordinary shares for €200,000,earned revenue of €22,000, incurred expenses of €12,000, and paid dividends of €1,000.Retained earnings at the end the month is

Question

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Retained earnings are calculated as the net income minus dividends. Net income is revenue minus expenses, which is €22,000 - €12,000 = €10,000. After paying dividends of €1,000, retained earnings are €10,000 - €1,000 = €9,000.

Mica IncBegan Operations in October, 2011