Denmark Inc

Denmark Inc. is preparing a statement of stockholders' equity for 2016. On January 1, 2016, Denmark started the year with a $100,000 credit balance in its retained earnings account. During 2016, the company earned net income of $70,000 and declared dividends of $10,000. Also, the company received cash of $15,000 as an additional investment by its owners. What is the balance in retained earnings on December 31, 2016?

A) $100,000.
B) $170,000.
C) $175,000.
D) $160,000.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free