Question

The following is the adjusted trial balance for Stockton Company. Determine the retained earnings ending balance.

A) $2,923
B) $29,004
C) $13,981
D) $15,139

Answer 1

The retained earnings ending balance cannot be determined from the adjusted trial balance alone.

Step-by-step explanation:

The retained earnings ending balance cannot be determined from the adjusted trial balance alone. Retained earnings is the accumulated net income of a company, minus any dividends paid to shareholders. It is calculated by adding net income to the beginning balance of retained earnings and subtracting any dividends.

In this case, we do not have the net income or the beginning balance of retained earnings, so we cannot determine the ending balance. Therefore, none of the provided options (A, B, C, D) are correct.