On January 1, 2019, a company's balance in retained earnings was $275,000. During 2019, the company earned net income of $23,500 and paid $11,200 in dividends. Calculate the retained earnings balance at December 31, 2019.

Question

Quizplus · Accepted Answer

Retained earnings balance at December 31, 2019 can be calculated as:
Retained earnings balance at December 31, 2019 = Retained earnings balance at January 1, 2019 + Net income during 2019 - Dividends paid during 2019
Retained earnings balance at December 31, 2019 = $275,000 + $23,500 - $11,200
Retained earnings balance at December 31, 2019 = $287,300
Therefore, the answer is choice D.

On January 1, 2019, a Company's Balance in Retained Earnings