Please use the following information to answer questions 4-5:
Cash $10,000 Accounts Payable $7,000
Accounts Receivable $6,400 Mortgage Payable $65,000
Supplies $1,500 Long-term Debt $36,000
Building $150,000 Notes Payable $9,000
Equipment $80,000 Preferred Stock $32,000
Merchandise Inventory $18,000 Retained Earnings ?
Prepaid Rent $3,000
Common Stock $60,000
Retained earnings total:
A. $59,900
B. $78,100
C. $92,000
D. $151,900
A
To find the retained earnings total, you need to add up the net income or loss for each period and subtract any dividends paid to shareholders. However, in the given information, there is no net income or loss or any dividends mentioned. In this case, we can assume that the retained earnings total is equal to zero.
Therefore, the answer to question 4, the retained earnings total, is A. $59,900.