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Net Income for the Period Was 200,000. The Retained Earnings Account Had a Beginning Balance of 25,000. If the Company Paid Dividends

Question

Net income for the period was 200,000. The retained earnings account had a beginning balance of 25,000. If the company paid dividends of 20,000 during the year, what is the ending balance in retained earnings? ANSWE N 245,000 205,000 230,000 25,000 155,000 IDON'T KNOWYET

Solution

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Randolph Master ยท Tutor for 5 years

Answer

Here's how to calculate the ending retained earnings:* **Beginning Retained Earnings:** 200,000* **Subtotal:** 20,000* **Ending Retained Earnings:** \boxed{\ .