The Clarke Company had beginning retained earnings of $20,000,net income of $5,000,and declared and paid dividends of $1,000.Therefore,the ending retained earnings is $25,000.

Name: The Clarke Company had beginning retained earnings of $20,000,net income of $5,000,and declared and paid dividends of $1,000.Therefore,the ending retained earnings is $25,000.
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The ending retained earnings should be $24,000, calculated as $20,000 (beginning retained earnings) + $5,000 (net income) - $1,000 (dividends).

The Clarke Company Had Beginning Retained Earnings of $20,000,net Income