Question

Accounting balance sheet:Equipment $ 39,200 Buildings $ 500,000Land 425,000 Capital stock 135,000Accounts payable 54,800 Cash 31,400Accounts receivable 10,600 Furnishings 58,700Salaries payable 33,500 Snowmobiles 15,400Interest payable 12,000 Notes payable 620,000Retained earnings ?

Answer 1

Retained earnings 225,000

Step-by-step explanation:

Accounting Equation Formula:

Assets = Liabilities + Stockholders' Equity

Stockholders' Equity = Capital stock + Retained earnings

Replacing:

Assets = Liabilities + Capital stock + Retained earnings

Retained earnings = Assets - Liabilities - Capital stock

In the case of our company:

Retained earnings = Assets - Liabilities - Capital stock

Retained earnings = 1,080,300 - 720,300 - 135,000

Retained earnings = 225,000

To see the totals, please see attached file.