Question

A company has a beginning retained earnings balance of $100,000. It has net income for the current year of $50,000 and paid $10,000 to the owner as an owner withdrawal. What is the ending balance of retained earnings for the company

Answer 1

The ending balance of retained earnings for the company $ 140.000

Step-by-step explanation:

Retained Earnings increase the balance with the Net Income of each year that it's not withdrawalled by the owner or because are not paid dividends, to this case the owner only withdraw $10.000 of $50.000 generated during the year.