On January 1, 2014, Guided Light Corporation's Retained Earnings account had a balance of $275,000. During 2014, cash dividends of $50,000 were declared and stock dividends with a market value of $40,000 were declared. Net income for 2014 amounted to $120,000. What is the balance in Retained Earnings appearing on the statement of shareholders' equity on December 31, 2014?

Question

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Retained Earnings, 1/1/14                                     $275,000Add: Net income for 2014                                   120,000Less: Cash dividends                                             (50,000)Less: Stock dividends                                           (40,000)Retained Earnings, 12/31/14                               $305,000

On January 1, 2014, Guided Light Corporation's Retained Earnings Account