Question

Time Remaining 59 minutes 49 seconds00:59:49 PrintItem 1 Time Remaining 59 minutes 49 seconds00:59:49 At the end of Year 2, retained earnings for the Baker Company was $2,950. Revenue earned by the company in Year 2 was $3,200, expenses paid during the period were $1,700, and dividends paid during the period were $1,100. Based on this information alone, what was the amount of retained earnings at the beginning of Year 2?

Answer 1

Answer:

$2550

Step-by-step explanation:

Calculation to determine the amount of retained earnings at the beginning of Year 2

Using this formula

Beginning Retained Earnings + Revenue − Expenses − Dividends = Ending Retained Earnings

Let plug in the formula

Beginning Retained Earnings + $3,200 − $1,700 − $1,100 = $2950

Beginning Retained Earnings= $2,950-$400

Beginning Retained Earnings = $2,550

Therefore the amount of retained earnings at the beginning of Year 2 is $2550