Pharoah Company began the year with retained earnings of $403000. During the year, the company recorded revenues of $503000, expenses of $382000, and paid dividends of $42500. What was Pharoah's retained earnings balance at the end of the year?

Answer

Pharoah's retained earnings balance at the end of the year = $ 381,500

Explanation

Revenues = $403,000

Expenses = $382,000

Dividends = $42,500

Retained Earning Opening Balance = $403,000

Retained Earnings Closing Balance = Revenue - Expenses - Dividends + Retained Earning Opening Balance

= 403000 - 382000 - 42500 + 403000

381500

Pharoah's retained earnings balance at the end of the year = $ 381,500