Duke Corporation reports the following components of stockholders' equity on December 31,2013: What is the amount in the Retained Earnings account immediately after the May 25 sale?
A)$460,000
B)$328,500
C)$444,000
D)$433,000
E)$338,500

Question

Duke Corporation reports the following components of stockholders' equity on December 31,2013:   What is the amount in the Retained Earnings account immediately after the May 25 sale?
A)$460,000 
B)$328,500 
C)$444,000 
D)$433,000 
E)$338,500

Quizplus · Accepted Answer

The Retained Earnings account after the May 25 sale can be calculated as follows:

Retained Earnings (Beginning Balance) + Net Income - Dividends = Retained Earnings (Ending Balance)

$250,000 + $185,000 - $107,500 = $328,500

Therefore, the correct answer is B) $328,500.

Duke Corporation Reports the Following Components of Stockholders' Equity on December