account debit credit\ncash $900\naccounts receivable 1,200\ninventory 2,000\nsupplies 1,800\nprepaid rent…

account debit credit\ncash $900\naccounts receivable 1,200\ninventory 2,000\nsupplies 1,800\nprepaid rent 600\nland 6,200\nbuilding 39,300\naccumulated depreciation—building $8,400\naccounts payable 7,900\nunearned revenue 4,200\nnotes payable, due 2028 2,100\ncommon stock 6,800\nretained earnings 3,100\ndividends 900\nservice revenue 32,600\nrent expense 1,500\nsupplies expense 1,100\nsalaries expense 6,300\ndepreciation expense—building 1,500\nutilities expense 1,800\ntotals $65,100 $65,100\nwhat is the retained earnings balance at december 31, 2025?

account debit credit\ncash $900\naccounts receivable 1,200\ninventory 2,000\nsupplies 1,800\nprepaid rent 600\nland 6,200\nbuilding 39,300\naccumulated depreciation—building $8,400\naccounts payable 7,900\nunearned revenue 4,200\nnotes payable, due 2028 2,100\ncommon stock 6,800\nretained earnings 3,100\ndividends 900\nservice revenue 32,600\nrent expense 1,500\nsupplies expense 1,100\nsalaries expense 6,300\ndepreciation expense—building 1,500\nutilities expense 1,800\ntotals $65,100 $65,100\nwhat is the retained earnings balance at december 31, 2025?

Answer

Explanation:

Step1: Calculate Net Income

Net Income = Service Revenue - (Rent Expense + Supplies Expense + Salaries Expense + Depreciation Expense - Building + Utilities Expense) Net Income = $32,600-(1,500 + 1,100+6,300 + 1,500+1,800)$ Net Income = $32,600 - 12,200$ Net Income = $20,400$

Step2: Calculate Ending Retained Earnings

Ending Retained Earnings = Beginning Retained Earnings+Net Income - Dividends Ending Retained Earnings = $3,100+20,400 - 900$ Ending Retained Earnings = $22,600$

Answer:

$22,600$