Dimension Inc.had net income for 2017 of $24,000.It declared and paid a $13,000 cash dividend in 2017.If the company's retained earnings for the end of the year was $39,600,what was the company's retained earnings balance at the beginning of 2017?
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 - $24,000 + $13,000 = $28,600.