Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Please solve this question general accounting
Transcribed Image Text:Denmark Inc. is preparing a statement of stockholders' equity for 2014. On January 1,
2014, Denmark started the year with a $100,000 credit balance in its retained earnings
account. During 2014, the company earned a net income of $70,000 and declared
dividends of $10,000. Also, the company received cash of $15,000 as an additional
investment by its owners. What is the balance in retained earnings on December 31,
2014?
a. $100,000.
b. $170,000.
c. $175,000.
d. $160,000.
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