Question

Kolander Company has the following accounts and balances at the end of the​ year:

Long Term Notes Payable $56,000

Accounts Receivable $31,000

Accounts Payable $38,000

Building $57,000

Cash and Cash Equivalents $82,000

Salaries Expense $124,500

Common Stock $25,000

Intrest Payable $1,500

Land $41,000

Short-term investments $7,000

Income Taxes Payable $10,000

Equipment $61,500


What is the amount of Retained Earnings at the end of the​ year?

A. $60,000

B. 105,500

C. 184,000

D. 165,500

Answer 1

$149,000

Step-by-step explanation:

The basic accounting equation is; ASSETS = LIABILITIES + CAPITAL

Retained earnings is the missing figure in order to balance the equation. Salaries Expense will not be considered as it is an Income Statement item and not enough Data is provided to prepare an Income Statement.

ASSETS

Building $57,000

Land $41,000

Equipment $61,500

Accounts Receivable $31,000

Short-term investments $7,000

Cash and Cash Equivalents $82,000

Total Assets $279,500

LIABILITIES

Accounts Payable $38,000

Interest Payable $1,500

Income Taxes Payable $10,000

Long Term Notes Payable $56,000

Total Liabilities $105,500

EQUITY

Common Stock $25,000

Retained Earnings $149,000

Total Equity $279,500