Double Company has the following data available:
$\begin{array} { l }
\text {Dividends declared in 201 }&\$8,000 \
\text {Retained Earnings, December 31, 2014 }&\$30,000 \
\text {Net income for the year ended December 31,2015 }&\$ 14,000\
\text {Paid-in Capital, December 31, 2014 }&\$29,000 \
\text {Paid-in Capital, December 31, 2015 }&\$ 26,000\
\end{array}$

What is the balance in Retained Earnings on December 31,2015?
A) $2,000
B) $24,000
C) $36,000
D) $44,000

Question

Double Company has the following data available:
$\begin{array} { l  }
 \text {Dividends declared in 201 }&\$8,000 \
 \text {Retained Earnings, December 31, 2014 }&\$30,000 \
 \text {Net income for the year ended December 31,2015 }&\$ 14,000\
 \text {Paid-in Capital, December 31, 2014 }&\$29,000 \
 \text {Paid-in Capital, December 31, 2015 }&\$ 26,000\
\end{array}$

What is the balance in Retained Earnings on December 31,2015?
A) $2,000
B) $24,000
C) $36,000
D) $44,000

Quizplus · Accepted Answer

The balance in Retained Earnings on December 31, 2015, is calculated as follows: Starting with the Retained Earnings at the end of 2014 ($30,000), add the Net Income for 2015 ($14,000), and subtract the Dividends declared ($8,000). This gives us $30,000 + $14,000 - $8,000 = $36,000.

Double Company Has the Following Data Available What Is the Balance in Retained Earnings on December 31,2015