Question

Klein Interiors has the following account balances at the end of the year. Use only the appropriate accounts to prepare a balance sheet. Accounts Equipment Accounts payable Common stock Service revenue Cash Retained earnings Salaries expense Notes payable Balances $ 79,700 16,400 16.100 57,300 8,200 31,800 22.300 KLEIN INTERIORS Balance Sheet December 31 Liabilities Total abilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Total assets

Answer 1

Balance sheet For the year ended on Dec 31 Assets Liabilities Cash Equipment $ $ 8,200 Liabilities 79,700 Note Payable Accounts Payable Total Liabilities $ $ $ 22,300 14,400 36,700 Stockholders Equity Common Stock Retained Earning Total Equity $ $ $ 16,100 35,100 51,200 Total assets $ 87,900 Total Liabilities & Stockholder's Equity $ 87,900 Here Retained earning is the balancing figure. The amount required to balance both the sides of balance sheet is taken as retained earning amount. Retained Earning = 87900 - 52800 = 35100. ($ 52800 is total of liabilities & stock before retained earning amount)