cash $1,100 accounts receivable 900 inventory 2,200 supplies 1,900 prepaid rent 400 land 6,200 building…

cash $1,100 accounts receivable 900 inventory 2,200 supplies 1,900 prepaid rent 400 land 6,200 building 39,200 accumulated depreciation—building $8,400 accounts payable 7,100 unearned revenue 4,200 notes payable, due 2028 1,900 common stock 6,800 retained earnings 2,700 dividends 1,200 service revenue 34,000 rent expense 1,400 supplies expense 1,300 salaries expense 6,300 depreciation expense—building 1,200 utilities expense 1,800 totals $65,100 $65,100 what is the retained earnings balance at december 31, 2025?

cash $1,100 accounts receivable 900 inventory 2,200 supplies 1,900 prepaid rent 400 land 6,200 building 39,200 accumulated depreciation—building $8,400 accounts payable 7,100 unearned revenue 4,200 notes payable, due 2028 1,900 common stock 6,800 retained earnings 2,700 dividends 1,200 service revenue 34,000 rent expense 1,400 supplies expense 1,300 salaries expense 6,300 depreciation expense—building 1,200 utilities expense 1,800 totals $65,100 $65,100 what is the retained earnings balance at december 31, 2025?

Answer

Explanation:

Step1: Recall the retained - earnings formula

Retained Earnings Ending = Retained Earnings Beginning+Net Income - Dividends. Net Income = Service Revenue - (Rent Expense+Supplies Expense+Salaries Expense+Depreciation Expense - Building+Utilities Expense).

Step2: Calculate Net Income

Service Revenue = $34,000$. Total Expenses = $1,400 + 1,300+6,300 + 1,200+1,800=$12,000$. Net Income=$34,000 - 12,000=$22,000$.

Step3: Calculate Ending Retained Earnings

Retained Earnings Beginning = $2,700$. Dividends = $1,200$. Retained Earnings Ending=$2,700 + 22,000-1,200$. Retained Earnings Ending=$23,500$.

Answer:

$23,500$