nd total ets must change eased by 60000 Question 22 of 25 20

nd total ets must change eased by $60,000 Question 22 of 25?? 20 points 1-flash-cards/ At Sepmber 1,2014, Fits Inc reportnd Retained Earnings of $1.,692,000 Ding the mot, Fitz of $240,00, iscoumed equipment for $60,000 and paid dinidende of $24,000 What is the balance in R f etaised Earnings t Saptember 30, 20107 change by what an c. $1,704,000 and O d. $1,692,000 debt 26,900 And St ounting questions equity increased by direction during the n Financial Ma set turnover is:.Now ?Moving to another question wil save this response. gambon 22 of 25 641 PM 611v2018

Solution

Answer is Option b – $1764000 credit

Proof:

Ending Retained earnings (September 30^th) = Opening Retained earnings + Net Income – Dividend paid

Opening Retained earnings = 1692000

Net Income = Revenue – Expense = 240000-144000 = 96000

Dividend paid = 24000

Ending Retained earnings (September 30^th) = 1692000+96000-24000 = 1764000