At the end of 20C, Libby Company reported an ending balance for retained earnings of $50,000. During 20D, the company reported the following amounts: Dividends declared and paid, $30,000 and profit, $40,000. The 20D statement of Retained Earnings should report an ending balance for retained earnings of which of the following?

Question

Quizplus · Accepted Answer

The ending balance for retained earnings is calculated by taking the beginning balance, adding the profit, and subtracting the dividends. Starting with $50,000, add the profit of $40,000 to get $90,000, then subtract the dividends of $30,000 to arrive at $60,000.

At the End of 20C, Libby Company Reported an Ending