DW has an ending Retained Earnings balance of $51,100.If during the year DW paid dividends of $4,300 and had net income of $22,500,then what was the beginning Retained Earnings balance?

Question

Quizplus · Accepted Answer

The Retained Earnings formula is Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings.
Substituting the given values, we get:
Beginning Retained Earnings + $22,500 - $4,300 = $51,100
Beginning Retained Earnings = $51,100 - $22,500 + $4,300 = $32,900
Therefore, the beginning Retained Earnings balance was $32,900.

DW Has an Ending Retained Earnings Balance of $51,100