Answered

Quartz Instruments had retained earnings of $145,000 at December 31, 2017. Net income for 2018 was $90,000, and dividends for 2018 were $30,000. What amount of retained earnings should be reported at December 31, 2018?

(A) $145,000
(B) $205,000
(C) $235,000
(D) $175,000

Answer :

mltn1980

Answer:

(B) $205,000

Explanation:

Retained  earnings at December 31, were $145.000, with the Net Income for 2018 of $90.000 the total amount of Retained earnings up to $235.000, but as the company has paid dividends for $30.000, it means a cash out of $30.000.

So the new balance in the Retained Earnings Account it's $205.000

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