A corporation reported a net income of $120,000 for its fiscal year and declared and paid cash dividends of $50,000.A stock dividend recorded at $80,000 was also distributed during the year.If the beginning balance of the Retained Earnings account was $200,000,the ending balance is

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Quizplus · Accepted Answer

The ending balance of Retained Earnings is calculated as: Beginning Retained Earnings + Net Income - Cash Dividends. Stock dividends do not affect the Retained Earnings balance. Therefore, $200,000 + $120,000 - $50,000 = $270,000.

A Corporation Reported a Net Income of $120,000 for Its