On January 1, 2019, Miller Corporation had retained earnings of $8,000,000. During 2019, Miller reported net income of
Posted: Sat Aug 07, 2021 6:49 am
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.
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.