Find the retained earnings and the net income given this information at the end

Question

Find the retained earnings and the net income given this information at the end of the year. Accounts Receivablev$23,000, Accounts Payablev$15,000 , Cash $8,000, Common Stock $110,000, Supplies $$9,000 , and Equipment $138,000.

A. Please calculate the balance in retained Earnings at the year end........

B. if the amount in Retained Earnings at the beginning of the year was $30,000...and dividends were paid out in the amount of $12,000.....please calculate Net Income for the year...

So I need A and B answered ...thank you

Explanation / Answer

A)Accounts Receivable 23,000 - asset

Accounts Payable 15,000 - liability
Cash 8,000 - asset
Common Stock 110,000 - equity
Retained Earning ? equity
Supplies 9,000 - asset
Equipment 138,000 - asset

a) Calculate the balance in Retained Earnings at year-end?
Basic accounting equation: Assets = Liabilities + (Common stock + retained earnings)
Assets $178,000 = 15,000 + (110,000 + ??)

so retained earnings = 53000

B)Subtract beginning retained earnings from ending retained earnings to calculate the year's retained earnings.Add dividends paid to the yearly retained earnings to calculate net income for the year

so we get

53000-30,000 +12,000 = net income of year

net income = 30000

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