A corporation reported a net income of $120,000 for its fiscal year and declared and paid cash dividends of $60,000.A stock dividend recorded at $40,000 was also distributed during the year.If the ending balance of the Retained Earnings account was $200,000,the beginning balance was

Question

Quizplus · Accepted Answer

Beginning balance of Retained Earnings can be calculated as follows:

Beginning balance + Net income - Dividends - Stock dividends = Ending balance
X + 120,000 - 60,000 - 40,000 = 200,000
X = 180,000

Therefore, the beginning balance of the Retained Earnings account was $180,000.

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