At December 31, 2014 Lowery Company had retained earnings of $2,384,000. During 2014 they issued stock for $98,000, and paid dividends of $34,000. Net income for 2014 was $402,000. The retained earnings balance at the beginning of 2014 was
A) $2,752,000.
B) $2,016,000.
C) $2,114,000.
D) $2,654,000.

Question

Quizplus · Accepted Answer

The beginning retained earnings can be calculated by subtracting net income and adding dividends to the ending retained earnings: $2,384,000 - $402,000 + $34,000 = $2,016,000.

At December 31, 2014 Lowery Company Had Retained Earnings of $2,384,000