The amount of the Retained Earnings at the end of the year for Kolander Company is b. $54,000.
The retained earnings refer to the accumulated income not distributed to stockholders as dividends, which has accumulated over some financial years.
It is one source of equity financing.
Assets:
Cash and Cash Equivalents $85,000
Accounts Receivable $30,000
Supplies $6,000
Land $42,000
Short-term Investments $7,000
Building $59,000
Equipment $64,500
Total assets = $293,500
Liabilities and Equity:
Long-Term Notes Payable $59,000
Interest Payable $5,500
Accounts Payable $38,000
Income Taxes Payable $10,000
Common Stock $127,000
Total liabilities + Common Stock = $269,500
Retained earnings = $54,000 ($293,500 - $239,500)
Thus, the Retained Earnings at the end of the year for Kolander Company is b. $54,000.
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Question Completion with Answer Options:
Long Term Notes Payable $59,000
Interest Payable $5,500
Accounts Receivable $30,000
Land $42,000
Accounts Payable $38,000
Shortminus term Investments $7,000
Building $59,000
Income Taxes Payable $10,000
Cash and Cash Equivalents $85,000
Equipment $64,500
Common Stock $127,000
Supplies $6,000
a. $177,000
b. $54,000
c. $113,500
d. $167,500
