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Crawford Company started the year with $30,000 in its Common Stock account and a credit balance in Retained Earnings of $20,000. During the year, the company earned net income of $44,000 and declared and paid $3,000 of dividends. In addition, the company sold additional common stock amounting to $10,000. As a result, the amount of its retained earnings at the end of the year would be

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TomShelby

Answer:

Ending Retained Earnings 61,000 dollars

Explanation:

To solve for retained earnings at year-end we do:

[tex]$Beginning Retained Earnings$$+/- Net Income/Loss$$- Dividends$$Equals Ending Retained Earning[/tex]

Beginning RE 20,000

Net Income     44,000

Dividneds        (3,000)  

Ending RE       61,000

The common stock and the new issued shares do not impact on the retained earnings balance. We ignore this information.

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