DW has an ending Retained Earnings balance of $51,100.If during the year DW paid dividends of $4,300 and had net income of $22,500,then what was the beginning Retained Earnings balance?
A)$24,300.
B)$32,900.
C)$300.

Question

Quizplus · Accepted Answer

Beginning Retained Earnings = Ending Retained Earnings - Dividends Paid + Net Income
Beginning Retained Earnings = $51,100 - $4,300 + $22,500
Beginning Retained Earnings = $69,300
Therefore, the beginning Retained Earnings balance was $32,900.

DW Has an Ending Retained Earnings Balance of $51,100