Answered

Select the correct answer.

What are the retained earnings at the end of the accounting period?

\begin{tabular}{|l|c|}
\hline \multicolumn{1}{|c|}{Item} & \multicolumn{1}{c|}{[tex]$\$[/tex][tex]$} \\
\hline Beginning retained earnings & 10,000 \\
\hline Net income & 350,000 \\
\hline Dividend payout & 320,000 \\
\hline
\end{tabular}

A. $[/tex]\[tex]$ 40,000$[/tex]
B. [tex]$\$[/tex] 30,000[tex]$
C. $[/tex]\[tex]$ 10,000$[/tex]
D. [tex]$\$[/tex] 350,000$



Answer :

GinnyAnswer
To determine the retained earnings at the end of the accounting period, follow these steps:

1. Start with the beginning retained earnings.
2. Add the net income for the period.
3. Subtract the dividend payout from the sum of the beginning retained earnings and net income.

Using the given data:

1. The beginning retained earnings are [tex]$10,000. 2. The net income is $[/tex]350,000.
3. The dividend payout is [tex]$320,000. First, add the net income to the beginning retained earnings: \[ 10,000 + 350,000 = 360,000 \] Next, subtract the dividend payout from the result: \[ 360,000 - 320,000 = 40,000 \] Therefore, the retained earnings at the end of the accounting period is: \[ \boxed{\$[/tex]40,000}
\]

So, the correct answer is:
A. [tex]$\$[/tex] 40,000$

Other Questions