Question

On January 1, 2018, Bull Frog Light Corporation had the following account balances: assets of $900,000,...

On January 1, 2018, Bull Frog Light Corporation had the following account balances: assets of $900,000, liabilities of $250,000, retained earnings of $120,000, revenues of $300,000, expenses of $200,000, and dividends of $20,000. What will the ending balance of retained earnings be on December 31, 2018.

A.

credit of $220,000.

B.

$200,000

C.

$650,000.

D.

$100,000.

Homework Answers

Answer #1

Ending balance of retained earnings = Beginning balance of retained earnings+Net income-Dividend

                                                      = 120000+(300000-200000)-20000

Ending balance of retained earnings = 200000

So answer is b) $200000

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