Asked by Kayla Kirkpatrick on May 02, 2024
Verified
The ending balance of retained earnings is
A) $53,000
B) $47,000
C) $3,000
D) $50,000
Retained Earnings
Profits that a company keeps after dividends are paid to shareholders, used for reinvestment in the business or to pay off debt.
- Assess and interpret the influence of closing entries on retained earnings.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
D
Explanation :
The question does not provide any information about the net income or dividends, so we cannot calculate the retained earnings directly. However, we can use the basic accounting equation: Assets = Liabilities + Equity. Retained earnings is part of equity, so we can calculate it as follows:
Assets = $100,000
Liabilities = $47,000
Equity = Assets - Liabilities = $100,000 - $47,000 = $53,000
Therefore, the ending balance of retained earnings is $53,000. The answer is D.
Assets = $100,000
Liabilities = $47,000
Equity = Assets - Liabilities = $100,000 - $47,000 = $53,000
Therefore, the ending balance of retained earnings is $53,000. The answer is D.
Learning Objectives
- Assess and interpret the influence of closing entries on retained earnings.
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