Question

Milton Corp. has beginning retained earnings of $800. During the year Milton had $2,000 of revenues and $900 in expenses. Milton paid a dividend of $100. What is retained earnings at year-end?

Answer 1

The retained earnings are $1800.

Step-by-step explanation:

The beginning balance = $800.

Revenues = $2000.

Expenses = $900.

Paid dividend = $100.

Therefore the retained earning at the end of the year should be:

Beginning balance + Revenues - Expenses - Paid dividend

Retained earnings = 800+2000-900-100 = $1800.