At the end of Year 2,retained earnings for the Baker Company was $3,500.Revenue earned by the company in Year 2 was $1,500,expenses paid during the period were $800,and dividends paid during the period were $500.Based on this information alone,what was the amount of retained earnings at the beginning of Year 2?
A)$3,300
B)$3,700
C)$2,800
D)$3,800

Question

Quizplus · Accepted Answer

Beginning Retained Earnings + Revenue - Expenses - Dividends = Ending Retained Earnings
Beginning Retained Earnings + $1,500 - $800 - $500 = $3,500
Beginning Retained Earnings = $3,300

At the End of Year 2,retained Earnings for the Baker