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12 July, 12:22

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

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  1. 12 July, 12:38
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    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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