The following accounts and balances were drawn from the records of Barnes Company:
Based on this information alone the amount of Barnes's retained earnings is

A)$11,600.
B)$17,200.
C)$5,200.
D)None of these answers is correct.

Question

The following accounts and balances were drawn from the records of Barnes Company:
Based on this information alone the amount of Barnes's retained earnings is

A)$11,600. 
B)$17,200. 
C)$5,200. 
D)None of these answers is correct.

Quizplus · Accepted Answer

The retained earnings can be calculated by subtracting total liabilities and stockholders' equity from total assets. 
Retained earnings = Total assets - Total liabilities - Stockholders' equity 
Retained earnings = $33,100 - $21,400 - $6,500 
Retained earnings = $5,200. 
Therefore, the correct answer is (C)$5,200.

The Following Accounts and Balances Were Drawn from the Records