Question

Sharidan Company began the year with retained earnings of $659000. During the year, the company recorded revenues of $600000, expenses of $380000, and paid dividends of $141500. What was Sheridan retained earnings at the end of the year?

a- $1131500
b- $600000
c- $1017500
d- $ 737500

Answer 1

d- $737,500

Step-by-step explanation:

Retained Earnings = Beginning Period Retained Earnings + Profit - Cash Dividends

Profit= Revenues- Expenses= $600,000- $380,000= $220,000

Retained Earnings = Beginning Period Retained Earnings + Profit - Cash Dividends

Retained Earnings= $695,000+ $220,000- $141500

Retained Earnings = $773,500