At the beginning of the current year Duke Company had the following balances in their stockholders' equity accounts as of December 31, 20X5: Paid- in capital $43,000
Retained earnings 27,000
During the year ended December 31, 20X6, Duke Company generated $35,400 in net income, and declared and paid $12,000 in dividends. The ending balance in the Retained Earnings account at December 31, 20X6 is:
A) $27,000
B) $66,400
C) $23,400
D) $50,400

Question

Quizplus · Accepted Answer

The ending balance in Retained Earnings is calculated by adding the net income and subtracting the dividends from the beginning balance: $27,000 + $35,400 - $12,000 = $50,400.

At the Beginning of the Current Year Duke Company Had