Here is the question:

The beginning balance of retained earnings was $7,500. The dividends paid to stockholders' were $1,500. The ending balance of retained earnings is $5,000. What was the net income or net loss for the accounting period?

Is this correct:

7,500-1,500=6,000
6,000-5,000=1,000 (why would this be net loss?)

Thanks a bunch!
:)

You got it, Enigma. As to why it must be a loss, think it through...

Beginning Retained Earnings
Plus Net Income (or minus Net Loss)
Minus Dividends paid out
= Ending Retained Earnings