For the first three years of operations, the company reports net income of $1,000, $2,000, and $3,000, and pays dividends of $500, $1,000, and $1,000. What is the balance of retained earnings at the end of the third year?
A) $2,000.
B) $2,500.
C) $3,500.
D) $6,000.
Answer: C
In the first three years of operations, Lindsey Corporation reported net income(loss) of $(150,000), $100,000, and $250,000. At the end of the third year, Lindsey Corporation has a balance of $120,000 in its Retained Earnings account. What is the total amount of dividends Lindsey Corporation paid over the three years?
A) $130,000.
B) $120,000.
C) $80,000.
D) $380,000.
Answer: C
The Retained Earnings account had a beginning credit balance of $26,000. During the period, the business had a net loss $12,000, and the company paid dividends of $8,000. The ending balance in the Retained Earnings account is:
A) $6,000.
B) $30,000.
C) $22,000.
D) $14,000.
Answer: A
