Algonquin Company reported assets of $50,000,liabilities of $22,000 and common stock of $15,000.Based on this information only,what is the amount of the company's retained earnings?
A)$7,000.
B)$57,000.
C)$13,000.
D)$87,000.

Question

Quizplus · Accepted Answer

Assets = Liabilities + Equity;Equity includes common stock and retained earnings.$50,000 = $22,000 + $15,000 + Retained earnings;Retained earnings = $13,000

Algonquin Company Reported Assets of $50,000,liabilities of $22,000 and Common