Been There Used Furniture Been There Used Furniture began operation on January 1,2013,with an initial investment of $100,000 from each of its five stockholders.During the year,the company had net income of $200,000 and paid dividends of $50,000.
-Refer to Been There Used Furniture.Calculate the retained earnings balance at December 31,2013.

Question

Quizplus · Accepted Answer

Retained earnings are calculated as the net income minus dividends. The company had a net income of $200,000 and paid dividends of $50,000. Therefore, the retained earnings balance is $200,000 - $50,000 = $150,000.

Been There Used Furniture Been There Used Furniture Began Operation