On January 1, 2019, Miller Corporation had retained earnings of $8,000,000. During 2019, Miller reported net income of

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899559
Joined: Mon Aug 02, 2021 8:13 am

On January 1, 2019, Miller Corporation had retained earnings of $8,000,000. During 2019, Miller reported net income of

Post by answerhappygod »

On January 1, 2019, Miller Corporation had retained earnings of $8,000,000. During 2019,
Miller reported net income of $1,500,000, declared dividends of $500,000, and issued common
stock for $1,000,000. What were Miller's retained earnings on December 31, 2019?

A) $7,000,000.
B) $9,500,000.
C) $9,000,000.
D) $7,500,000.
Answer: C
Explanation: Ending retained earnings ($9,000,000) = Beginning retained earnings ($8,000,000)
+ Net income ($1,500,000) − Dividends ($500,000). The issuance of common stock does not
impact retained earnings.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply