The amount of retained earnings as of January 1, 2014 was:
A)$1,475.
B)$1,800.
C)$975.
D)$1,225.

Name: The amount of retained earnings as of January 1, 2014 was: A)$1,475. B)$1,800. C)$975. D)$1,225.
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Question

Quizplus · Accepted Answer

Assets ($1,000 + $850 + $800) = Liabilities ($450) + Common Stock ($975) + Pre-closing Retained Earnings
Pre-closing Retained Earnings = $2,650 - $1,425 = $1,225
$1,225 + $250 Net Income - $500 Dividends = $975 Retained Earnings on 1/1/14

The Amount of Retained Earnings as of January 1, 2014