Question

"Quartz Instruments had Retained Earnings of $133,000 at December 31, 2018. Net income for 2019 was $83,000, and dividends for 2019 were $23,000.

What amount of Retained Earnings should be reported at December 31, 2019?"

Answer 1

To calculate the new amount of Retained Earnings at December 31, 2019 for Quartz Instruments, you need to start with the Retained Earnings at the beginning of the year, add the net income for the year, and subtract the dividends paid.

Step-by-step explanation:

To calculate the new amount of Retained Earnings at December 31, 2019, you need to start with the Retained Earnings at the beginning of the year and then add the net income for the year and subtract the dividends paid. In this case:

Retained Earnings at December 31, 2019 = Retained Earnings at December 31, 2018 + Net Income for 2019 - Dividends for 2019

Substituting the given values:

Retained Earnings at December 31, 2019 = $133,000 + $83,000 - $23,000

Retained Earnings at December 31, 2019 = $193,000