A company had a beginning balance in retained earnings of $43,000.It had net income of $6,000 and paid out cash dividends of $5,625 in the current period.The ending balance in retained earnings account is equal to:
A)$108,625
B)$(12,625)
C)$11,375
D)$43,375
E)$(11,375)

Question

Quizplus · Accepted Answer

The ending balance in retained earnings is calculated as: Beginning balance ($43,000) + Net income ($6,000) - Dividends paid ($5,625) = $43,375.

A Company Had a Beginning Balance in Retained Earnings of $43,000.It