For the current financial year, a tour operating company had $270,000 in its retained earnings account at the beginning of the year. During the year it earned $60,000 in profit and paid $12,000 in dividends to its owners. The balance sheet at the end of the current financial year should reflect a retained earnings balance of:

Question

Quizplus · Accepted Answer

The retained earnings at the end of the year would be the beginning balance plus profit earned during the year minus dividends paid out. So, $270,000 + $60,000 - $12,000 = $318,000.

For the Current Financial Year, a Tour Operating Company Had