Grizzly Company had Retained Earnings at December 31,2018 of $300,000.During 2019,the company had revenues of $600,000 and expenses of $525,000,and the company declared and paid dividends of $16,500.Retained earnings on the balance sheet as of December 31,2019 will be:

Question

Quizplus · Accepted Answer

Net income = Revenues − Expenses
= $600,000 − $525,000 = $75,000
Ending retained earnings = Beginning retained earnings + Net income − Dividends
= $300,000 + $75,000 − $16,500 = $358,500

Grizzly Company Had Retained Earnings at December 31,2018 of $300,000