Blue Fin started the current year with assets of $840,000,liabilities of $420,000 and common stock of $240,000.During the current year,assets increased by $480,000,liabilities decreased by $60,000 and common stock increased by $330,000.There was no payment of dividends to owners during the year. Based on this information,what was the amount of Blue Fin's retained earnings at the beginning of the year?

Question

Quizplus · Accepted Answer

Assets = Liabilities + Stockholders' Equity
Stockholders' Equity = Assets − Liabilities
= $840,000 − $420,000 = $420,000
Stockholders' Equity = Common Stock + Retained earnings.
Retained Earnings = Stockholders' Equity − Common Stock
= $420,000 − $240,000 = $180,000

Blue Fin Started the Current Year with Assets of $840,000,liabilities