A company had a beginning balance in retained earnings of $430,000.It had net income of $60,000 and declared and paid cash dividends of $56,250 in the current period.The ending balance in retained earnings equals:
A)$546,250.
B)$426,250.
C)$116,250.
D)$433,750.
E)$490,000.

Question

Quizplus · Accepted Answer

Retained earnings = Beginning balance + Net income - Dividends paid
Retained earnings = $430,000 + $60,000 - $56,250
Retained earnings = $433,750
Therefore, the ending balance in retained earnings is $433,750. Option D is the correct answer.

A Company Had a Beginning Balance in Retained Earnings of $430,000.It