On December 31,2018,the balance in Retained Earnings is $40,000.On December 31,2019,the balance in Retained Earnings is $38,200.During 2019,dividends of $8,000 were declared and paid.What is the amount of net income for 2019?

Question

Quizplus · Accepted Answer

Ending retained earnings = Beginning retained earnings + Net income − Dividends
Net income = Ending retained earnings − Beginning retained earnings + Dividends
= $38,200 − $40,000 + $8,000 = $6,200

On December 31,2018,the Balance in Retained Earnings Is $40,000