The retained profits balance of Go Company was $50 000 on the first day of the year.Profit during the year was $20 000.Near year-end a $10 000 dividend was declared that is to be paid in the following year.Year-end retained profits are:

Question

Quizplus · Accepted Answer

The retained profits balance at the end of the year is calculated as:
Retained Profits (Start of Year) + Profit during the year - Dividend declared = Retained Profits (End of Year)

Plugging in the given values:
$50,000 + $20,000 - $10,000 = $60,000

Therefore, the answer is B) $60,000.

The Retained Profits Balance of Go Company Was $50 000