Question

Golden Enterprises started the year with the following: Assets $125.000: Liabilities $42,500: Common Stock $73,000, Retained Earnings $11,000 During the year, the company earned revenue of $6,700, all of which was received in cash, and incurred expenses of $3,850, all of which were unpaid as of the end of the year. In addition, the cominy paid dividends of $2700 to owners. Assume no other activities occurred during the year The amount of Golden's retained earnings at the end of the year is:_________

Answer 1

$11,150

Step-by-step explanation:

The amount of Golden's retained earnings at the end of the year is calculated below

Ending retained earnings = Beginning retained earnings + Net income - Dividends

= $11,000 + ($6,700 - $3,850) - $2,700

= $11,150