At the beginning of the year Retained Earnings had a $50,000 credit balance. During the year, the company had net income of $21,000 and paid dividends of $9,000. What is the ending balance of the Retained Earnings account after year-end closing entries have been posted?

At the beginning of the year Retained Earnings had a $50,000 credit balance. During the year, the company had net income of $21,000 and paid dividends of $9,000. What is the ending balance of the Retained Earnings account after year-end closing entries have been posted?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 10MCQ: Reinhardt Company reported revenues of $122,000 and expenses of $83,000 on its 2019 income...

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Question

At the beginning of the year Retained Earnings had a $50,000 credit balance. During the year, the company had
net income of $21,000 and paid dividends of $9,000. What is the ending balance of the Retained Earnings
account after year-end closing entries have been posted?
Multiple Choice
$80,000
$62,000
O $71,000
$50,000

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