On January 1, 2013, a company's balance in retained earnings was $275,000. During 2013, the company earned net income of $23,500 and paid $11,200 in dividends. Calculate the retained earnings balance at December 31, 2013.

Question

Quizplus · Accepted Answer

Starting balance in retained earnings = $275,000
Add: Net Income earned during the year = $23,500
Total = $298,500
Less: Dividends paid during the year = $11,200
Retained Earnings balance at December 31, 2013 = $287,300

Therefore, the correct choice is (D) $287,300.

On January 1, 2013, a Company's Balance in Retained Earnings