The following information was taken from the records of Tellers Corporation for the year ended December 31, 2013: Given the above information, retained earnings on December 31, 2012 was

Question

The following information was taken from the records of Tellers Corporation for the year ended December 31, 2013:  Given the above information, retained earnings on December 31, 2012 was

Quizplus · Accepted Answer

Retained earnings on December 31, 2012 can be calculated as follows: 
Retained earnings on December 31, 2013 = $97,890 
Add: Dividends declared and paid during the year = $11,400 
Subtract: Net income for the year = $48,690 
Retained earnings on December 31, 2012 = $97,890 + $11,400 - $48,690 = $60,600 
Therefore, the closest option is B) $40,800.

The Following Information Was Taken from the Records of Tellers