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Suppose that company AA had retained earning of $20,000 on adjusted trial balance. Their net income was $10,000, and they paid dividends of $5,000 in that accounting period. How much is the balance of retained earning at the end of current accounting period

Respuesta :

Answer:

$25,000

Explanation:

Data provided as per the question:-

Retained earning = $20,000

Net income = $10,000

Paid dividends = $5,000

The computation of balance of retained earning at the end of current accounting period is shown below:-

Balance of retained earning = Retained earning + Net income - Paid dividends

= $20,000 + $10,000 - $5,000

= $25,000

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