DM Company had beginning retained earnings of $60,000.During the year the company had net income of $275,000 and declared and paid dividends of $7,500.The ending balance in retained earnings is ________.

Question

Quizplus · Accepted Answer

The ending balance in retained earnings is calculated by adding net income to the beginning retained earnings and then subtracting dividends. So, $60,000 (beginning retained earnings) + $275,000 (net income) - $7,500 (dividends) = $327,500.

DM Company Had Beginning Retained Earnings of $60,000