Question

At the end of Year 2, retained earnings for the Baker Company was $3,500. Revenue earned by the company in Year 2 was $1,500, expenses paid during the period were $800, and dividends paid during the period were $500. Based on this information alone, retained earnings at the beginning of Year 2 was: Multiple Choice A.$2,800 B. $3.800 C.$3,700 D.$3.300

Answer 1

Answer:

D. $3.300

Explanation:

Beginning Retained Earnings + Revenue − Expenses − Dividends = Ending Retained Earnings

Beginning Retained Earnings + $1,500 − $800 − $500 = $3,500 Beginning Retained Earnings = $3,300

Therefore the answer is D $3 300