Pinson Company began the year with retained earnings of $570,000. During the year, the company recorded revenues of $600,000, expenses of $380,000, and paid dividends of $140,000. What was Pinson's retained earnings at the end of the year?
A) $930,000
B) $650,000
C) $1,030,000
D) $500,000

Question

Quizplus · Accepted Answer

To calculate the retained earnings at the end of the year, start with the beginning retained earnings of $570,000, add the net income (revenues of $600,000 minus expenses of $380,000, which equals $220,000), and subtract the dividends paid ($140,000). This results in $570,000 + $220,000 - $140,000 = $650,000.

Pinson Company Began the Year with Retained Earnings of $570,000