The Don't Tread on Me Tire Company had retained earnings at December 31,2013 of $200,000.During 2014,the company had revenues of $400,000 and expenses of $350,000,and the company declared and paid dividends of $11,000.Retained earnings on the balance sheet as of December 31,2014 will be:

Question

Quizplus · Accepted Answer

Retained earnings at the end of 2014 = Beginning retained earnings + Net income - Dividends = $200,000 + ($400,000 - $350,000) - $11,000 = $239,000.

The Don't Tread on Me Tire Company Had Retained Earnings