Answer:
c) $20,000
Explanation:
Cash 16,000
Accounts Receivable 6,000
Supplies 2,000
Equipment 19,000
Accumulated Depr. (6,000)
TOTAL ASSETS = 37,000
Accounts Payable 10,000
Wages Payable 2,000
TOTAL LIABILITIES = 12,000
Common Stock 5,000
Retained Earnings 9,710
Dividends (1,000)
TOTAL EQUITY = 13,710
Fees Earned 44,702
Wages Expense 21,466
Rent Expense 5,946
Depreciation Expense 6,000
NET INCOME = 11,290
retained earnings = $9,710 - $1,000 (dividends) + $11,290 (net income) = $20,000
TOTAL ASSETS = $37,000
TOTAL LIABILITIES = $12,000
TOTAL SHAREHOLDERS' EQUITY = $5,000 (COMMON STOCK) + $20,000 (RETAINED EARNINGS) = $25,000
