Asked by sophia dudich on May 18, 2024
Verified
Determine the retained earnings ending balance.
A) $12,150
B) $15,730
C) $6,480
D) $21,400
Retained Earnings
The portion of a company's profits that is held or retained and saved for future use, investments, or to pay debt, rather than distributed to shareholders as dividends.
Adjusted Trial Balance
A statement listing all accounts and their final balances after adjusting entries are made, used to prepare financial statements.
- Ready oneself and apprehend the significance of the adjusted trial balance and its contribution towards the formulation of financial statements.
Verified Answer
VN
Vignesh NarayananMay 24, 2024
Final Answer :
B
Explanation :
Retained Earnings ending balance can be calculated by taking the beginning balance of retained earnings ($6,480) and adding net income ($2,300) and then subtracting dividends ($50) which gives us a balance of $8,730. Therefore, option B is correct ($15,730 - $8,000 = $7,730 + $1,000 - $50 = $15,710).
Learning Objectives
- Ready oneself and apprehend the significance of the adjusted trial balance and its contribution towards the formulation of financial statements.
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