A company had a beginning balance in retained earnings of $400,000.It had net income of $50,000 and declared and paid cash dividends of $55,000 in the current period.The ending balance in retained earnings equals:
A)$505,000.
B)$405,000.
C)$395,000.
D)$455,000.
E)$350,000.

Question

Quizplus · Accepted Answer

The ending balance in retained earnings is calculated by starting with the beginning balance, adding net income, and subtracting dividends paid. Therefore, $400,000 + $50,000 - $55,000 = $395,000.

A Company Had a Beginning Balance in Retained Earnings of $400,000.It