Been There Used Furniture began operation on January 1, 2019, with an initial investment of $100,000 from each of its five stockholders. During the year, the company had net income of $200,000 and paid dividends of $50,000.
-Refer to Been There Used Furniture. Calculate the retained earnings balance at December 31, 2019.
A)$150,000
B)$200,000
C)$500,000
D)$650,000

Question

Quizplus · Accepted Answer

Retained earnings at the end of the year equals the net income minus dividends paid. Therefore, $200,000 (net income) - $50,000 (dividends) = $150,000.

Been There Used Furniture Began Operation on January 1, 2019