At the end of 2016,retained earnings for the Baker Company was $3,500.Revenue earned by the company in 2016 was $1,500,expenses paid during the period were $800,and dividends paid during the period were $500.Based on this information alone,retained earnings at the beginning of 2016 was
A)$3,300.
B)$3,700.
C)$2,800.
D)$3,800.

Question

Quizplus · Accepted Answer

Retained earnings at the beginning of the year = Retained earnings at the end of the previous year + Revenue earned - Expenses paid - Dividends paid= $3,500 + $1,500 - $800 - $500= $3,300

At the End of 2016,retained Earnings for the Baker Company