[The Following Information Applies to the Questions Displayed Below -The Amount of Carolina's Retained Earnings on December 31,Year 1

question 10

Multiple Choice

[The following information applies to the questions displayed below.]
The following pre-closing accounts and balances were drawn from the records of Carolina Company on December 31, Year 1:
$\begin{array}{lrlr}\text { Cash } & \$ 4,000 & \text { Accounts receivable } & \$ 3,400 \\\text { Dividends } & 2,000 & \text { Common stock } & 3,900 \\\text { Land } & 3,200 & \text { Revenue } & 3,200 \\\text { Accounts payable } & 1,800 & \text { Expense } & 2,200 \\\text { Retained earnings } & 5,900 & &\end{array}$
-The amount of Carolina's retained earnings on December 31,Year 1 was:

• A) $5,900
• B) $7,200
• C) $3,900
• D) $4,900

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