The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information: At June 1, 2015, Camera Obscura reported retained earnings of $35,000. The company had no dividends during June. At June 30, 2015, the company will report retained earnings of
A)$29,300.
B)$35,000.
C)$36,300.
D)$42,000.

Question

The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information:  At June 1, 2015, Camera Obscura reported retained earnings of $35,000. The company had no dividends during June. At June 30, 2015, the company will report retained earnings of
A)$29,300. 
B)$35,000. 
C)$36,300. 
D)$42,000.

Quizplus · Accepted Answer

Retained earnings at the beginning of the month = $35,000
Net income for the month = $1,300
Retained earnings at the end of the month = Beginning retained earnings + Net income
= $35,000 + $1,300
= $36,300
Therefore, the correct answer is (C).

The Income Statement for the Month of June, 2015 of Camera