Question

Pierson Industries has a beginning retained earnings balance of $42,500. An adjusted trial balance shows total expenses of $97,300 and revenue of $104,800. If dividends for the year were $3,500, determine the ending retained earnings balance for the year.

Answer 1

Answer:

$46,500

Explanation:

Data provided in the question:

Beginning retained earnings balance = $42,500

Total expenses = $97,300

Revenue = $104,800

Dividends for the year = $3,500

Now,

The ending retained earnings balance for the year will be

= Beginning retained earnings balance + Revenue - Total expenses - Dividends for the year

=  $42,500 + $104,800 - $97,300 -  $3,500

= $46,500