During 2014, its first year of operations, Jane's Bakery had revenues of $65,000 and expenses of $33,000. The business paid cash dividends of $18,000. What is the balance in Retained Earnings at December 31, 2014?
A) $0
B) $18,000 debit
C) $14,000 credit
D) $32,000 credit

Question

Quizplus · Accepted Answer

Retained Earnings = Revenues - Expenses - Dividends = $65,000 - $33,000 - $18,000 = $14,000 credit.

During 2014, Its First Year of Operations, Jane's Bakery Had