Refer to the information above. After closing the accounts, Retained earnings at December 31 equals:
A) zero.
B) $14,500.
C) $22,000.
D) $22,500.

Question

Quizplus · Accepted Answer

Retained earnings is the amount of earnings that have been retained by the company after paying dividends to shareholders. In this case, the company had a net income of $14,500 and paid dividends of $7,500, so the retained earnings at December 31 is $14,500.

Refer to the Information Above