At January 1, 2018, Alligator Industries reported retained earnings of $150,000. During 2018, Alligator had a net loss of $30,000 and paid dividends of $15,000. At December 31, 2018, the amount of retained earnings is

Question

Quizplus · Accepted Answer

Retained earnings at the end of the year is calculated as the beginning retained earnings plus net income (or minus net loss) minus dividends. So, $150,000 - $30,000 - $15,000 = $105,000.

At January 1, 2018, Alligator Industries Reported Retained Earnings of $150,000