The Don't Tread on Me Tire Company had retained earnings at December 31,2007 of $200,000.During 2008,the company had revenues of $400,000 and expenses of $350,000,and the company declared and paid dividends of $11,000.Retained earnings on the balance sheet as of December 31,2008 will be:

Question

Quizplus · Accepted Answer

The retained earnings at the end of 2008 is calculated as the beginning retained earnings ($200,000) plus net income for 2008 ($400,000 - $350,000 = $50,000) minus dividends paid ($11,000), which equals $239,000.

The Don't Tread on Me Tire Company Had Retained Earnings