Question

g Novak Corp. started the year with $73200 in its Common Stock account and a credit balance in Retained Earnings of $53700. During the year, the company earned net income of $58600, and declared and paid $24400 of dividends. In addition, the company sold additional common stock amounting to $34200. As a result, the balance in retained earnings at the end of the year would be

Answer 1

the ending retained earnings balance is $87,900

Step-by-step explanation:

The computation of the ending retained earnings balance is shown below:

= opening retained earning balance + net income - dividend paid

= $53,700 + $58,600 - $24,400

= $87,900

Hence, the ending retained earnings balance is $87,900

We simply applied the above formula