At January 1, 2012, Jay Corporation Had a Credit Balance

question 125

Multiple Choice

At January 1, 2012, Jay Corporation had a credit balance of $5,450,000 in its retained earnings account. During the year, Jay paid $250,000 in dividends, reported profit of $560,000 and other comprehensive income of $750,000. The December 31 balance of retained earnings is:

• A)$5,760,000.
• B)$5,950,000.
• C)$6,200,000.
• D)$6,450,000.

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Definitions:

Warranty of Title

A guarantee in a sales contract that the seller has the legal right to transfer ownership and that there are no undisclosed encumbrances against the property or goods.

Implied Warranty

An unwritten guarantee that a product will meet a minimum level of quality and functionality.

Code

A systematic collection of laws, regulations, or rules that govern a specific area of legal practice.

Express Warranty

A clearly stated promise from a seller regarding the condition, quality, or performance of the goods being sold.