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If the beginning balance of retained earnings is $ 180 comma 000​, revenue is $ 85 comma 000​, expenses total $ 35 comma 000​, and the company declares and pays a $ 20 comma 000 ​dividend, what is the ending balance of retained​ earnings? ​Let's begin by selecting the labels in the summarized statement of retained earnings and then enter the amounts to calculate the ending balance of retained earnings for the company. ​(Include a subtotal after the​ "Add" line of the​ statement.)

Respuesta :

Answer:

The ending balance of Retained Earnings is $210000

Explanation:

The balance in retained earning at start is $180000

The addition to retained earnings during the period will be,

Sales - Expenses = Net Profit

So,

Net profit for the period = 85000 - 35000 = $50000

Out of this Net Profit, $20000 is paid out as dividend and the remaining is retained in the business and transferred to the retained earnings account.

Thus, Closing Retained Earnings = 180000 + (50000 - 20000) = $210000

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