The value of the retained earnings account at the end of the year for Waldo Construction is calculated by taking the beginning retained earnings, adding net income, and subtracting dividends paid. In this case, the ending retained earnings are $289,000.
The question asks us to determine the value of the retained earnings account at the end of the year for Waldo Construction, which had beginning retained earnings of $284,300.
Throughout the year, the company earned a net income of $13,700 and paid dividends of $9,000. It's important to note that the issuance of new stock does not affect the retained earnings.
To calculate the ending retained earnings, we use the following formula:
Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividends Paid
Applying the numbers given:
Ending Retained Earnings = $284,300 + $13,700 - $9,000
Ending Retained Earnings = $289,000
Therefore, the value of the retained earnings account at the end of the year is $289,000 (Option d).