Question

During January 2014, its first month of operation, Osborn Enterprises earned net income of $1,700 and paid dividends to the owners of $500. At January 31, the balance in Retained Earnings will be

A)$0

B) $1,700 credit

C) $1,200 credit

D) $500 debit.

Answer 1

The balance in Retained Earnings at January 31 will be $1200 credit.

Step-by-step explanation:

The balance in Retained Earnings at January 31 can be calculated by starting with the net income of $1700 and subtracting the dividends paid to the owners of $500. So, the balance in Retained Earnings at January 31 will be $1700 - $500 = $1200 credit.