On September 1, 2019, Might Dog, Inc. reported Retained Earnings of $544,000. During the month of September, Bulldog generated revenues of $80,000, incurred expenses of $48,000, purchased equipment for $20,000 and paid dividends of $24,000.
What is the balance in Retained Earnings on September 30, 2019?

Question

Quizplus · Accepted Answer

Ending Retained earnings = Beginning Retained earnings + Revenues - Expenses -Dividends
X = $544,000 + $80,000 - $48,000 - $24,000
X = $552,000 (The balance is a credit, the normal balance for the Retained Earnings account.)