25 the retained earnings account had a beginning credit balance of $26,200. during the period, the business…

25 the retained earnings account had a beginning credit balance of $26,200. during the period, the business had a net loss of $12,000, and the company paid dividends of $8,700. the ending balance in the retained earnings account is: multiple choice $5,500 $4,200 $29,500 $38,200

25 the retained earnings account had a beginning credit balance of $26,200. during the period, the business had a net loss of $12,000, and the company paid dividends of $8,700. the ending balance in the retained earnings account is: multiple choice $5,500 $4,200 $29,500 $38,200

Answer

Explanation:

Step1: Recall the formula for ending retained earnings

Ending retained earnings = Beginning retained earnings - Net loss - Dividends

Step2: Substitute the given values

Beginning retained earnings = $26,200$, Net loss = $12,000$, Dividends = $8,700$. So, Ending retained earnings = $26200 - 12000 - 8700$

Step3: Perform the calculation

$26200-12000 - 8700=5500$

Answer:

$5,500$