The amount of Retained Earnings at December 31,2013 is:

Question

Quizplus · Accepted Answer

To find the Retained Earnings at December 31, 2013, we need to subtract the total amount of dividends paid from the net income for the year and the beginning balance of retained earnings.

Retained earnings at the beginning of the year = $7,500
Net income = $8,000
Dividends paid = $3,850

Retained earnings at December 31, 2013 = Beginning balance + Net income - Dividends paid
= $7,500 + $8,000 - $3,850
= $11,650

Therefore, the correct answer is C) $11,650.

The Amount of Retained Earnings at December 31,2013 Is