What was the retained earnings at the beginning of the year? At the end of year 2:

Retained earnings: $7000

During year 2:

Revenue $3,000

Expense: $1,600

Dividends: $1000

(I know the answer is C but I do not know why)

8. What was the retained earnings at the beginning of the year? At THE END of year2 Retained Earnings $7,000 During year 2 Revenue $3,000 Expense $1,600 Dividends 1,000 a. $7,200 b. $1400 c. $6600 d. $2400