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. $300. C. $32,900. D. $69,300.

Question

Business

Marin Baxter

10 March, 17:38

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. $300. C. $32,900. D. $69,300.

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Answers (1)

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Smiley · Answer 1

C. $32,900

Explanation:

The computation of the beginning retained earning balance is shown below"

As we know that

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

$51,100 = Beginning retained earning balance + $22,500 - $4,300

$51,100 = Beginning retained earning balance + $18,200

So, the beginning retained earning balance would be

= $51,100 - $18,200

= $32,900