Kincaid Company's Retained Earnings balance on January 1 was $9,000. During the current year, Kincaid earned $3,100 in revenues and incurred $4,300 in expenses. Kincaid declared and paid $3,000 in dividends, all in cash. After the closing entries are made, Kincaid's Retained Earnings balance on December 31 will be:

A) $7,800.

B) $9,100.

C) $9,000.

D) $4,800.

Question

Myles Donovan

Business

16 August, 00:51

Kincaid Company's Retained Earnings balance on January 1 was $9,000. During the current year, Kincaid earned $3,100 in revenues and incurred $4,300 in expenses. Kincaid declared and paid $3,000 in dividends, all in cash. After the closing entries are made, Kincaid's Retained Earnings balance on December 31 will be:

A) $7,800.

B) $9,100.

C) $9,000.

D) $4,800.

+1

Answers (1)

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Gianna Johnson · Answer 1

D) $4,800

Explanation:

Previous Retained Earnings + Revenue - Expenses - Dividends = Current Retained Earnings

Old Retained Earnings - $9,000

Revenue - $3,100

Expenses - ($4,300)

Dividends - ($3,000)

Current Retained Earnings = $4,800