Consider the following account starting balances and transactions involving thes

Question

Consider the following account starting balances and transactions involving these accounts. Use T-accounts to record the starting balances and the offsetting entries for the transactions. The starting balance of Cash is $14,700 The starting balance of Inventory is $3,800 The starting balance of Retained Earnings is $22,900 1. Sell product for $35 in cash with historical cost of $28 2. Sell, deliver, and receive payment of $20 for service 3. Consume good or service and pay expense of $3 What is the final amount in Retained Earnings?

Explanation / Answer

Final amount in Retained Earnings = 22900+(35-28)+20-3= $22924

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