If the beginning balance of Retained Earnings equals $10,000,net income for the year equals $6,000,and dividends for the year equal $2,000,then the ending balance of Retained Earnings equals $18,000.Ending Retained Earnings = beginning Retained Earnings ($10,000)+ net income ($6,000)- dividends ($2,000)= $14,000.

Question

Quizplus · Accepted Answer

The correct calculation is: Beginning Retained Earnings ($10,000) + Net Income ($6,000) - Dividends ($2,000) = $14,000, not $18,000.

If the Beginning Balance of Retained Earnings Equals $10,000,net Income