The beginning balance in the Common Stock account of a company was $14,000. The revenues and expenses were $240,000 and $100,000, respectively. During the year, the company declared and paid dividends of $7,000 The ending balance in the Retained Earnings was $133,000. (Assume that the opening balance of Retained Earnings was zero.)

Indicate whether the statement is true or false

TRUE .Beginning Retained Earnings $0
Add: Net Income ($240,000 - $100,000 ) 140,000
Dividends (7,000 )
Ending Retained Earnings $133,000