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17 June, 01:56

Sheffield Corp. started the year with $63600 in its Common Stock account and a credit balance in Retained Earnings of $46600. During the year, the company earned net income of $50900, and declared and paid $21200 of dividends. In addition, the company sold additional common stock amounting to $29700. As a result, the balance in retained earnings at the end of the year would be?

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  1. 17 June, 04:53
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    The balance in retained earnings at the end of the year will be $70,300.

    Explanation:

    Retained earning beginning balance = $46,600

    Net Income for the year = $50,900

    Dividend Paid = $21,200

    Retained earning Ending balance = Retained earning beginning balance + Net Income for the year - Dividend paid during the year

    Retained earning Ending balance = $46,600 + $50,900 - $21,200

    Retained earning Ending balance = $70,300

    So, the balance in retained earnings at the end of the year will be $70,300.
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