Dimension Inc.had net income for 2016 of $24,000.It declared and paid a $13,000 cash dividend in 2016.If the company's retained earnings for the end of the year were $39,600, what was the company's retained earnings balance at the beginning of 2016?
A) $28,600
B) $50,600
C) $76,600
D) $2,600

Question

Quizplus · Accepted Answer

The beginning retained earnings balance can be calculated by subtracting the net income and adding the dividends to the ending retained earnings. So, $39,600 (ending retained earnings) - $24,000 (net income) + $13,000 (dividends) = $28,600.