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hram777 [196]
3 years ago
11

Instruments had retained earnings of $ 390 comma 000 at December​ 31, 2017. Net income for 2018 totaled $ 220 comma 000​, and di

vidends declared for 2018 were $ 40 comma 000. How much retained earnings should Quartz report at December​ 31, 2018​?
Business
1 answer:
VashaNatasha [74]3 years ago
3 0

Answer:

The retained earnings should Quartz report at December​ 31, 2018 is $570,000

Explanation:

In this question, we apply the retained earnings equation which is shown below:

Ending retained earnings balance = Beginning retained earning balance + net income - dividend paid

= $390,000 + $220,000 - $40,000

= $570,000

The net income should be added while dividend should be deducted for finding out the ending retained earnings balance

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