Mica Inc. began operations in October, 2014. During October, Mica sold ordinary shares for €600,000, earned revenue of €66,000, incurred expenses of €36,000, and paid dividends of €3,000. Retained earnings at the end the month is

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Retained earnings are calculated as: Beginning Retained Earnings + Net Income - Dividends. Since the company began operations in October, the beginning retained earnings are €0. Net Income is Revenue (€66,000) - Expenses (€36,000) = €30,000. Retained earnings = €0 + €30,000 - €3,000 = €27,000.

Mica Inc Began Operations in October, 2014