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Klein Interiors has the following account balances at the end of the year. Use only the appropriate accounts to prepare a balance sheet.

Accounts Balances
Equipment $ 81,500
Accounts payable 13,600
Common stock 24,600
Service revenue 50,400
Cash 6,200
Retained earnings ?
Salaries expense 31,600
Notes payable 22,300

Respuesta :

TomShelby

Answer:

RE = 27,200

Explanation:

We will calculate the Retained Earnings using the accounting equation.

Assets = Liab + Equity

Assests:

cash               6,200

equipment    81,500  

total assets;   87,700

Liabilities:

Account Payable 13,600

Notes Payable    22,300  

Total Laibilities    35,900

Equity:

Common stock 24,600

RE: X

We will plug these values int o the accounting equatio nand solve for retained earnings.

Assets = Liab + Equity

87,700 = 35,900 + 24,600 + Retained Earnings

87,700 - 35,900 - 24,600 = RE

RE = 27,200

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