Question

Finley Company

End-of-Period Spreadsheet

For the Year Ended December 31

Adjusted Trial Balance Income Statement Balance Sheet

Account Title Debit Credit Debit Credit Debit Credit

Cash 16,000 16,000

Accounts Receivable 6,000 6,000

Supplies 2,000 2,000

Equipment 19,000 19,000

Accumulated Depr. 6,000 6,000

Accounts Payable 10,000 10,000

Wages Payable 2,000 2,000

Common Stock 5,000 5,000

Retained Earnings 9,710 9,710

Dividends 1,000 1,000

Fees Earned 44,702 44,702

Wages Expense 21,466 21,466

Rent Expense 5,946 5,946

Depreciation Expense 6,000 6,000

Totals 77,412 77,412 33,412 44,702 44,000 32,710

Net Income (Loss) 11,290 11,290 44,702 44,702 44,000 44,000

The ending balance of retained earnings is:

a. $0

b. $14,710

c. $20,000

d. $11,290

Answer 1

c) $20,000

Step-by-step explanation:

Cash 16,000

Accounts Receivable 6,000

Supplies 2,000

Equipment 19,000

Accumulated Depr. (6,000)

TOTAL ASSETS = 37,000

Accounts Payable 10,000

Wages Payable 2,000

TOTAL LIABILITIES = 12,000

Common Stock 5,000

Retained Earnings 9,710

Dividends (1,000)

TOTAL EQUITY = 13,710

Fees Earned 44,702

Wages Expense 21,466

Rent Expense 5,946

Depreciation Expense 6,000

NET INCOME = 11,290

retained earnings = $9,710 - $1,000 (dividends) + $11,290 (net income) = $20,000

TOTAL ASSETS = $37,000

TOTAL LIABILITIES = $12,000

TOTAL SHAREHOLDERS' EQUITY = $5,000 (COMMON STOCK) + $20,000 (RETAINED EARNINGS) = $25,000