At December 31, 2014 Keen Company had retained earnings of $1,292,000. During 2014 they issued stock for $49,000, and paid dividends of $17,000. Net income for 2014 was $201,000. The retained earnings balance at the beginning of 2014 was
A) $1,476,000.
B) $1,108,000.
C) $1,157,000.
D) $1,427,000.

Question

Quizplus · Accepted Answer

The beginning retained earnings can be calculated by taking the ending retained earnings, subtracting net income, and adding dividends: $1,292,000 - $201,000 + $17,000 = $1,108,000.

At December 31, 2014 Keen Company Had Retained Earnings of $1,292,000