Golden Enterprises started the year with the following: Assets $104,000; Liabilities $34,000; Common Stock $64,000. During...

Golden Enterprises started the year with the following: Assets $104,000; Liabilities $34,000; Common Stock $64,000. During the year, the company earned revenue of $5,400 and incurred expenses of $3,200. In addition, the company paid dividends of $1,400 to owners. Assume no other activities occurred during the year. The amount of Golden's retained earnings at the end of the year is: $8,200. $1,400. $11,400. $6,800.

Expert Solution

$6,800

Statement of retained earnings
Beg retained earnings	6,000
Add : Net income	2,200
Less : Dividends paid	(1,400)
End retained earnings	6,800

Beg retained earnings = Asset - Liabilities + Common Stock

= $104,000 - $64,000 + $34,000

= $6,000

Net income = revenue - expenses

= $5,400 - $3,200.

= $2,200

ekkarill92 answered 2 years ago

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