Sanke Company\'s Year 1 balance sheet showed $7,700 cash, $5.200 supplies, $2,30

Question

Sanke Company's Year 1 balance sheet showed $7,700 cash, $5.200 supplies, $2,300 accounts payable, $4,000 common stock, and $600 retained earnings. The company experienced the following event during year 2. Purchased $14,000 of supplies on account Earned $19,000 cash to reduce account payable created in Event 1 above Paid a $1,000 cash dividend. Physical count revealed $4,900 of supplied on hand at the end of year 2 Based on this information, the year 2 after closing balance in retained earnings is

Explanation / Answer

$4,300 Statement showing computations Particulars Amount Opening balance of Retained Earnings                    600.00 Earned Cash Revenue              19,000.00 Supplies Expense = 5200 + 14000 - 4900            (14,300.00) Cash dividend              (1,000.00) Closing Balance of retained earnings                4,300.00

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