At September 1 2022 Baxter Inc.reported Retained Earnings of $423000.During the month Baxter generated revenues of $60000 incurred expenses of $36000 purchased equipment for $15000 and paid dividends of $6000.What is the balance in Retained Earnings at September 30 2022?

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Quizplus · Accepted Answer

The balance in Retained Earnings is calculated as: Beginning Retained Earnings + Net Income - Dividends. Net Income is Revenues - Expenses = $60000 - $36000 = $24000. Therefore, Retained Earnings = $423000 + $24000 - $6000 = $441000.