Pharoah Company started the year with $74400 in its Common Stock account and a credit balance in Retained Earnings of $54600. During the year, the company earned net income of $59500, and declared and paid $24800 of dividends. In addition, the company sold additional common stock amounting to $34700. As a result, the balance in retained earnings at the end of the year would be

$89,300

Explanation:

The computation of the ending retained earning balance is shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

= $54,600 + $59,500 - $24,800

= $89,300

We simply added the net income and deduct the dividend to the beginning balance of retained earning so that the ending balance of retained earning could come

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy