Blossom Company began the year with retained earnings of $390000. During the year, the company recorded revenues of $489000, expenses of $379000, and paid dividends of $44500. What was Blossom retained earnings at the end of the year?

a) 489000
b) 455500
c) 533500
d) 833500

We have been given that Blossom Company began the year with retained earnings of $390000. During the year, the company recorded revenues of $489000, expenses of $379000, and paid dividends of $44500.

To find the retained earnings, we will use following formula.

[tex]\text{Retained earnings}=\text{Retained earnings (Previous)+Revenue}-\text{Expenses}-\text{Dividends}[/tex]

Upon substituting our given values, we will get:

[tex]\text{Retained earnings}=\$390,000+\$489,000-\$379,000-\$44,500[/tex]

[tex]\text{Retained earnings}=\$879000-\$423,500[/tex]

[tex]\text{Retained earnings}=\$455,500[/tex]

Therefore, the retained earnings at the end of the year was $455,500.

Blossom Company began the year with retained earnings of $390000. During the year, the company recorded revenues of $489000, expenses of $379000, and paid dividends of $44500. What was Blossom retained earnings at the end of the year? a) 489000 b) 455500 c) 533500 d) 833500

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Blossom Company began the year with retained earnings of $390000. During the year, the company recorded revenues of $489000, expenses of $379000, and paid dividends of $44500. What was Blossom retained earnings at the end of the year?

a) 489000
b) 455500
c) 533500
d) 833500