From the Following Information, Determine the Beginning Balance in the Retained

question 88

Multiple Choice

From the following information, determine the beginning balance in the Retained Earnings account. $$\begin{array} { l l } \text { Dividends } & \$ 8,000 \\\text { Ending Retained Earnings } & 30,000 \\\text { Net Income } & 14,000 \\\text { Paid-in Capital, beginning } & 29,000 \\\text { Paid-in Capital, ending } & 26,000\end{array}$$

• A)$24,000
• B)$2,000
• C)$46,000
• D)None of these answers is correct.

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Definitions:

Sole Proprietorship

A business ownership structure where a single individual owns, operates, and is responsible for all aspects of the business.

Personally Liable

The legal responsibility of an individual to compensate for debt or obligation from personal assets, not through corporate or shared assets.

Sole Proprietorship

A business structure where a single individual owns and operates the business, personally responsible for all its debts and liabilities.

Legal Structure

The way a business is organized legally, affecting liability, tax requirements, and regulatory obligations. Common forms include sole proprietorship, partnership, corporation, and LLC.