At the end of 2011, retained earnings for the bisk company was $3,050. revenue earned by the company in 2011 was $1,935, expenses paid during the period were $1,065, and dividends paid during the period were $550. based on this information alone, retained earnings at the beginning of 2011 was

Calculation of retained earnings beginning balance:

Retained earning beginning balance can be calculated using the following formula:

Retained earnings ending balance = Retained earning beginning balance + Revenue – Expenses - Dividends

Hence using the given information we can solve the equation as follows:

3,050 = Retained earning beginning balance + 1935 – 1065 - 550

3,050 = Retained earnings beginning balance +320

Retained earnings beginning balance = 3050-320 = $2,730

Hence, Retained earnings beginning balance is $2,730

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