Kolander Company has the following accounts and balances at the end of the year: What is the amount of Retained Earnings at the end of the year?
A)$45,000
B)$117,500
C)$162,500
D)$171,000

Question

Kolander Company has the following accounts and balances at the end of the year:  What is the amount of Retained Earnings at the end of the year?
A)$45,000 
B)$117,500 
C)$162,500 
D)$171,000

Quizplus · Accepted Answer

Total Assets = $288,500
Total Assets = Accounts Receivable $28,000 + Building $59,000 + Cash and Cash Equivalents $85,000 + Land $41,000 + Short-Term Investments $8,000 + Equipment $61,500 + Supplies $6,000 = $288,500
Total Liabilities = Note Payable $59,000 + Accounts Payable $42,000 + Interest Payable $5,500 + Income Taxes Payable $11,000 = $117,500
Retained Earnings =Total Assets $288,500 - Total Liabilities $117,500 - Common Stock $126,000 = $45,000

Kolander Company Has the Following Accounts and Balances at the End