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28 March, 18:46

LePage's has an ending Retained Earnings balance of $51,100. If during the year LePage's paid dividends of $4,300 and had net income of $22,500, then what was the beginning Retained Earnings balance? A. $24,300B. $32,900C. $300D. $69,300

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  1. 28 March, 18:53
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    Answer: Option (B) is correct.

    Explanation:

    Given that,

    Ending Retained Earnings balance (current) = $51,100

    Dividends = $4,300

    Net income = $22,500

    Current retained earnings = Beginning Retained Earnings + Net income - Dividends

    Beginning Retained Earnings = Current retained earnings - Net income + Dividends

    = $51,100 - $22,500 + $4,300

    = $32,900
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