A company had a beginning balance in retained earnings of $43,000. It had net income of $6,000 and paid out cash dividends of $5,625 in the current period. The ending balance in retained earnings equals:

Question

Quizplus · Accepted Answer

The ending balance in retained earnings equals beginning balance + net income - dividends paid. 
Therefore, the ending balance in retained earnings equals $43,000 + $6,000 - $5,625 = $43,375. Thus, the correct option is D.

A Company Had a Beginning Balance in Retained Earnings of $43,000