Final answer:
The balance in Retained Earnings at the end of January 2017 can be calculated by starting with the beginning balance, adding the net income, and subtracting the dividends paid. If the beginning balance is assumed to be $0, the balance in Retained Earnings at the end of January 2017 would be $5,860.
Step-by-step explanation:
The question is asking about the balance in Retained Earnings at the end of January 2017. Retained Earnings is a part of the equity section on a company's balance sheet. It represents the accumulated profits that have not been distributed to shareholders in the form of dividends. The balance in Retained Earnings is calculated by starting with the beginning balance, adding net income, and subtracting dividends.
Given the information provided, the beginning balance in Retained Earnings is not given, so we cannot calculate the exact balance at the end of January. However, we can calculate the balance by starting with the beginning balance, adding the net income of $8,300, and subtracting the dividends paid of $2,440. Let's assume that the beginning balance in Retained Earnings is $0. Applying the calculation:
Beginning balance in Retained Earnings + Net income - Dividends = End balance in Retained Earnings
Using the numbers given:
- Beginning balance in Retained Earnings = $0
- Net income = $8,300
- Dividends = $2,440
Calculating:
$0 + $8,300 - $2,440 = $5,860
Therefore, if the beginning balance in Retained Earnings is assumed to be $0, the balance in Retained Earnings at the end of January 2017 would be $5,860.