On January 1,2014,Francisco Company's balance in retained earnings was $70,000.During 2014,the company earned net income of $43,000 and paid $15,000 in dividends.Calculate the retained earnings balance at December 31,2014.

Question

Quizplus · Accepted Answer

Retained earnings at December 31, 2014 can be calculated as follows:
Retained earnings balance at January 1, 2014: $70,000
Add: Net income for the year ended December 31, 2014: $43,000
Subtract: Dividends paid during the year ended December 31, 2014: $15,000
Retained earnings balance at December 31, 2014: $98,000
Therefore, the answer is choice C, $98,000.

On January 1,2014,Francisco Company's Balance in Retained Earnings Was $70,000