Allen's Roofing posts $5,000 in net income and $200 in dividends for the year. How does...
Allen's Roofing posts $5,000 in net income and $200 in dividends for the year. How does this affect the retained earnings on the balance sheet?
Select only one.
A) Retained Earnings increases by $4,800
B) Retained Earnings increases by $5,000
C) Retained Earnings increases by $5,200
D) Retained Earnings decreases by $4,800
E) Retained Earnings decreases by $5,000
F) Retained Earnings decreases by $5,200
Homework Answers
Correct answer---(A) Retained earnings increase by$4800
.
Net income increases retained earnings and divided decrease retained earnings. Net increase will be , net income minus divided
Net increase=$5000-200= $4800
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