The following information was taken from the records of Hart Corporation for the month ended December 31, 2013: Given the above information, retained earnings as of December 31, 2013 is

Question

The following information was taken from the records of Hart Corporation for the month ended December 31, 2013:  Given the above information, retained earnings as of December 31, 2013 is

Quizplus · Accepted Answer

Retained earnings can be calculated as beginning retained earnings plus net income minus dividends. In this case, beginning retained earnings are given as $60,200, net income is $18,245, and dividends are $- (none declared). Therefore, retained earnings as of December 31, 2013 is $60,200 + $18,245 - $0 = $78,445. The closest option is B, which is $79,245, and therefore the correct answer.

The Following Information Was Taken from the Records of Hart