A corporation reported a net income of $135,000 for the current fiscal year and declared and paid cash dividends of $58,000 and declared and distributed a stock dividend recorded at $45,000. If the beginning balance of the Retained Earnings account was $190,000, the ending balance is:

Question

Quizplus · Accepted Answer

The ending balance of Retained Earnings is calculated as beginning balance + net income - cash dividends - stock dividends. So, $190,000 + $135,000 - $58,000 - $45,000 = $222,000.

A Corporation Reported a Net Income of $135,000 for the Current