Question

Grizzly Company had Retained Earnings at December 31, 2018 of $300,000. During 2019, the company had revenucs of $600,000 and expenses of $525,000, and the company declared and paid dividends of $16,500. Retained earnings on the balance sheet as of December 31, 2019 will be
a. $375,000
b. $358,500.
c. $58,500.
d. $433,500.

Answer 1

Answer:

b. $358,500

Explanation:

Given;

Retained Earnings at December 31, 2018 = $300,000

In 2019,

Revenue = $600,000

Expenses = $525,000

Declared and paid dividends = $16,500

Retained earnings on the balance sheet as of December 31, 2019

= $300,000 + $600,000 - $525,000 - $16,500

= $358,500

The right option is b. $358,500