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22 May, 07:27

Assume that Sallisaw Sideboards, Inc. had a retained earnings balance of $10,000 on April 1, and that the company had the following transactions during April. Issued common stock for cash, $5,000. Provided services to customers on account, $3,000. Provided services to customers in exchange for cash, $900. Purchased equipment and paid cash, $4,300. Paid April rent, $800. Paid employees' salaries for April, $900. What was Sallisaw's retained earning balance at the end of April? a. $11,400b. $12,200c. $16,400d. Some other amount

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  1. 22 May, 07:30
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    retained earning balance = $12,200

    correct option is b. $12,200

    Explanation:

    given data

    retained earnings balance = $10,000

    common stock = $5,000

    Provided services on account = $3,000

    Provided services in exchange for cash = $900

    Purchased equipment and paid cash = $4,300

    Paid rent = $800

    Paid workers salaries = $900

    solution

    we know sale is here

    Sales = 3000 + 900 = 3900

    Expenses = 800 + 900 = 1700

    So that sales less expenses is profit of 3900 - 1700 = $2200

    so retained earning balance = $10,000 + $2200

    retained earning balance = $12,200

    correct option is b. $12,200
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