The balance in retained earnings of a Company at the beginning of the year was $65,000.  During the year, the corporation earned revenue of $430,000 and incurred expenses of $360,000, dividends of $50,000 were declared and paid, and the balance of the Cash account increased by $10,000.  The company's net income and the year-end balance in the retained earnings account are, respectively: a                      $70,000 and $85,000. b                      $20,000 and $95,000. c                      $20,000 and $85,000. d                      $70,000 and $95,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The balance in retained earnings of a Company at the beginning of the year was $65,000.  During the year, the corporation earned revenue of $430,000 and incurred expenses of $360,000, dividends of $50,000 were declared and paid, and the balance of the Cash account increased by $10,000.  The company's net income and the year-end balance in the retained earnings account are, respectively:

a                      $70,000 and $85,000.

b                      $20,000 and $95,000.

c                      $20,000 and $85,000.

d                      $70,000 and $95,000.

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