The following is the adjusted trial balance for Stockton Company. Determine the

Question

The following is the adjusted trial balance for Stockton Company.

Determine the retained earnings ending balance.

$28,823

$1,285

$15,947

$14,237

Stockton Company
Adjusted Trial Balance
December 31 Cash 6,060 Accounts Receivable 2,428 Prepaid Expenses 732 Equipment 14,843 Accumulated Depreciation 1,285 Accounts Payable 1,491 Notes Payable 4,340 Common Stock 1,000 Retained Earnings 13,237 Dividends 510 Fees Earned 7,470 Wages Expense 2,643 Rent Expense 878 Utilities Expense 392 Depreciation Expense 215 Miscellaneous Expense 122 Totals 28,823 28,823

Explanation / Answer

Calculate retained earning ending balance :

Net income = (7470-2643-878-392-215-122) = 3220

Retained earnings = Beginning retained earnings+net income-dividends

= 13237+3220-510

Retained earnings = 15947

so answer is c) $15,947

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