If retained earnings has instead decreased $47,500 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss?

Question

Jamari Nash

Business

14 March, 20:35

If retained earnings has instead decreased $47,500 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss?

+4

Answers (1)

Know the Answer?

Kaydence Combs · Answer 1

There will be a net loss since the retained earnings have been decreased by $47,500 after closing the entries. Even if the dividends remain the same. The dividend amount is small compared to the retained earnings and this will result to investment losses.