During January 2017, its first month of operation, Osborn Enterprises earned net income of $6,800 and paid dividends to the owners of $2,000. At January 31, the balance in Retained Earnings will be
A)$0.
B)$6,800 credit.
C)$4,800 credit.
D)$2,000 debit.

Question

Quizplus · Accepted Answer

Retained Earnings = Net Income - Dividends
Retained Earnings = $6,800 - $2,000
Retained Earnings = $4,800 credit

During January 2017, Its First Month of Operation, Osborn Enterprises