The Andrews company currently has the following balances in their equity account
ID: 2532597 • Letter: T
Question
The Andrews company currently has the following balances in their equity accounts:Common Stock $51,641
Retained earnings -$50,550
Suppose next year the Andrews company generates $46,300 in Net Profit, and declares and pays $16,000 in Dividends. What will Andrews ending balance in Retained Earnings be next year? -$20,250 $97,941 $17,091 $1,091 The Andrews company currently has the following balances in their equity accounts:
Common Stock $51,641
Retained earnings -$50,550
Suppose next year the Andrews company generates $46,300 in Net Profit, and declares and pays $16,000 in Dividends. What will Andrews ending balance in Retained Earnings be next year? -$20,250 $97,941 $17,091 $1,091
Explanation / Answer
Retained Earnings Ending Balance = Retained Earnings Beg. Balance+Net Profit-Dividends paid
= -$50,550+$46,300-$16,000 = -$20,250
Andrews ending balance in Retained Earnings will be -$20,250 next year.
Hence the correct answer is A) -$20,250.
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