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29 December, 11:39

Pharoah Company began the year with retained earnings of $403000. During the year, the company recorded revenues of $503000, expenses of $382000, and paid dividends of $42500. What was Pharoah's retained earnings balance at the end of the year?

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  1. 29 December, 12:38
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    Answer

    Pharoah's retained earnings balance at the end of the year = $ 381,500

    Explanation

    Revenues = $403,000

    Expenses = $382,000

    Dividends = $42,500

    Retained Earning Opening Balance = $403,000

    Retained Earnings Closing Balance = Revenue - Expenses - Dividends + Retained Earning Opening Balance

    = 403000 - 382000 - 42500 + 403000

    381500

    Pharoah's retained earnings balance at the end of the year = $ 381,500
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