None Denmark Inc. is preparing a statement of stockholders' equity for 2014. On January 1,2014, Denmark started the year with a $100,000 credit balance in its retained earningsaccount. During 2014, the company earned a net income of $70,000 and declareddividends of $10,000. Also, the company received cash of $15,000 as an additionalinvestment by its owners. What is the balance in retained earnings on December 31,2014?a. $100,000.b. $170,000.c. $175,000.d. $160,000.

Step 1: Introduction to retained earningsRetained earnings refers to the accumulated net income…

Answered: Denmark Inc. is preparing a statement…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 17E

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