Answer:
$13.700
Explanation:
The net income that it's not paid in dividens it's keep as retained earnings, so in this situation the $4.000 initial retained earnings plus $10.000 of the net income generated during the year and minus the $300 paid in dividends gives a total amount of $13.700.
Answer: Ending Balance (retained income) = $13700
Explanation:
Retained income is the net income/profit that is re-invested back into the company after paying dividends to the shareholders
of the company. Net income is re-invested back into to business in order for the business to be able to grow. Retained income account will therefore reflect the accumulated balance of profits that have been re-invested back to the company.
The closing balance of the retained income is calculated by taking the opening balance add net income/net profit for the year and subtract dividends paid.
calculation of Retained Income closing Balance
Opening Balance = $4000
Net Income for the year = $10000
Dividends paid = 300
Closing Balance = 4000 + 10000 - 300 = 13700
The Retained income closing Balance = $13700
