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caroline company’s balance sheet as of december 31, 2016 showed total assets of $170,000, and total liabilities of $70,000, and common stock of $64,000. during 2017, the company reported revenues of $64,000, expenses of $50,000, and paid dividends of $16,000. quizlet

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If caroline company’s balance sheet as of december 31, 2016 showed total assets of $170,000, and total liabilities of $70,000 and the company reported revenues of $64,000. The balance in the Retained Earnings account on Jan 1, 2018 is: $34,000.

Retained earnings

First step is to calculate the stockholder's equity

Stockholder's equity=$170,000-$70,000

Stockholder's equity=$100,000

Second step is to calculate the retained earnings

Retained earnings =Stockholder's equity-Common stock+ Revenue-Expenses-Dividend

Let plug in the formula

Retained earnings =$100,000-$64,000+$64,000-$50,000-$16,000

Retained earnings =$34,000

Therefore If caroline company’s balance sheet as of december 31, 2016 showed total assets of $170,000, the balance in the Retained Earnings account on Jan 1, 2018 is: $34,000.

Learn more about retained earnings here:https://brainly.com/question/25631040

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