Beginning Retained Earnings are $356,000; sales are $529,000; expenses are $44,400; and dividends paid are $3,000. How much is the amount in ending Retained Earnings?

Question

Quizplus · Accepted Answer

To calculate the ending retained earnings, we need to use the formula:

Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividends Paid

where Net Income = Sales - Expenses

Substituting the given values, we get:

Net Income = $529,000 - $44,400 = $484,600

Ending Retained Earnings = $356,000 + $484,600 - $3,000 = $837,600

Therefore, the amount in ending Retained Earnings is $837,600. Option D is the correct answer.

Beginning Retained Earnings Are $356,000; Sales Are $529,000; Expenses Are