At the end of 20C,Libby Company reported an ending balance for retained earnings of $50,000.During 20D,the company reported the following amounts: Dividends declared and paid,$30,000 and profit,$40,000.The 20D statement of Retained Earnings should report an ending balance for retained earnings of which of the following?
A)$60,000.
B)$80,000.
C)$90,000.
D)$100,000.

Question

Quizplus · Accepted Answer

The ending balance for retained earnings is calculated by adding the profit to the beginning balance and then subtracting the dividends. So, $50,000 (beginning balance) + $40,000 (profit) - $30,000 (dividends) = $60,000.

At the End of 20C,Libby Company Reported an Ending Balance