During 2017, its first year of operations, Jane's Bakery had revenues of $130,000 and expenses of $66,000. The business paid cash dividends of $36,000. What is the balance in Retained Earnings at December 31, 2017?
A)$0
B)$36,000 debit
C)$28,000 credit
D)$64,000 credit

Question

Quizplus · Accepted Answer

Retained Earnings is calculated as Revenues minus Expenses minus Dividends. So, $130,000 (Revenues) - $66,000 (Expenses) - $36,000 (Dividends) = $28,000 credit balance in Retained Earnings.

During 2017, Its First Year of Operations, Jane's Bakery Had