Bartlett Industries
Bartlett Industries began operations on January 2, 2015, with an investment of $50,000 by each of its two stockholders.Net income for its first year of business was $240,000.Bartlett Industries paid a total of $100,000 in dividends to its stockholders during the year.
-Read the information about Bartlett Industries.What is the company's retained earnings balance at December 31, 2015?
A)$140,000
B)$190,000
C)$240,000
D)$340,000

Question

Quizplus · Accepted Answer

Retained earnings are calculated as the net income minus dividends paid. For Bartlett Industries, the retained earnings at December 31, 2015, would be $240,000 (net income) - $100,000 (dividends) = $140,000.

Bartlett Industries Bartlett Industries Began Operations on January 2, 2015, with an with an Investment