Which is the amount of retained earnings that will be reported on the Statement of Stockholders' equity at the end of 2012?
A) $90,000
B) $75,000
C) $70,000
D) $35,000

Question

Quizplus · Accepted Answer

Retained earnings at the beginning of 2012 were $70,000. Net income for 2012 was $25,000. Dividends declared and paid during 2012 were $5,000. Retained earnings at the end of 2012 are $70,000 + $25,000 - $5,000 = $90,000.

Which Is the Amount of Retained Earnings That Will Be