During January 2022 its first month of operation Osborn Enterprises earned net income of $6800 and paid dividends to the owners of $2000.At January 31 the balance in Retained Earnings will be

Question

Quizplus · Accepted Answer

The balance in Retained Earnings at the beginning of January was $0. 
Net income earned in January was $6800, which would be added to Retained Earnings. 
Dividends paid to the owners were $2000, which would be subtracted from Retained Earnings.

Therefore, the Retained Earnings balance at January 31 would be: 
$0 + $6800 - $2000 = $4800

Thus, choice C is the best answer.

During January 2022 Its First Month of Operation Osborn Enterprises