At the beginning of 2010, Stevens Co. had a balance of $100,000 in Retained Earnings. During 2010 the company paid a dividend of $1,000 and had a net income of $12,000.

What should be the balance in Retained Earnings on 12/31/10?

Question

Business

Janelle Steele

29 February, 07:53

At the beginning of 2010, Stevens Co. had a balance of $100,000 in Retained Earnings. During 2010 the company paid a dividend of $1,000 and had a net income of $12,000.

What should be the balance in Retained Earnings on 12/31/10?

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Answers (1)

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Halle Moody · Answer 1

Balance in retained earning will be $111000

Explanation:

We have given at the beginning retained earning is $100000

Dividend paid by the company is $1000

Net income = $12000

We have to find the balance in retained earning at the end

Balance in retained earning at the end will be equal to

Retained earning at the end = Beginning retained earning + net income - dividend = $10000 + $12000 - $1000 = $111000

So balance in retained earning will be $111000

At the beginning of 2010, Stevens Co. had a balance of $100,000 in Retained Earnings. During 2010 the company paid a dividend of $1,000 and had a net income of $12,000.What should be the balance in Retained Earnings on 12/31/10?

At the beginning of 2010, Stevens Co. had a balance of $100,000 in Retained Earnings. During 2010 the company paid a dividend of $1,000 and had a net income of $12,000.

What should be the balance in Retained Earnings on 12/31/10?