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A company has the following account balances at the end of the year.

Accounts Balances
Equipment $ 22,000
Accounts payable 2,200
Salaries expense 29,000
Common stock 12,000
Land 14,000
Notes payable 16,000
Service revenue 35,000
Cash 5,200
Retained earnings ?

Respuesta :

Parrain

Based on the account balances at the end of year, the retained earnings are $5,000.

What are the retained earnings?

First, find the net income:

= Service revenue - Salaries

= 35,000 - 29,000

= $6,000

Then find the assets:

= 22,000 + 14,000 + 5,200

= $41,200

Then the liabilities:

= 2,200 + 16,000

= $18,200

Retained earnings:

= Assets - Liabilities - Net income - Common stock

= 41,200 - 18,200 - 6,000 - 12,000

= $5,000

Find out more on retained earnings at https://brainly.com/question/25998979.

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