Answer:
Cash 23,100
Retained earnings 52,000
Explanation:
Really easy!
Retained Earnings increases by the amount of net income and decreases when dividend are paid.
If we have a beginning balance of 35,000 in RE (retained earnings) then we sum the net income and subtract the dividends to get the final balance of RE:
35,000 + 19,900 - 2,900 = 52,000
in the balance sheet, at the equity section the entry of Retained earnings must be 52,000.
The other accounts for equity and liabilities are Common Stock and Accounts Payable
Equity and Liabilities
Accounts Payable plus Common Stock and Retained Earnings:
2,500 + 5,000 + 52,000 = 59,500
Equity and Liabilities 59,500
According to the accounting equation, Assets equal to Equity plus Liabilities
So Assets are equal to 59,500.
We have as part of assets Cash, Accounts receivable, supplies inventory, equipment and accumulated depreciation, that instead of adding is subtracting. Everything equal to 59,500 so we write the equation and get Cash from there.
Cash+ Accounts receivable + supplies inventory + equipment - accumulated depreciation = 59,500
Cash + 8,800 + 5,300 + 37,500 - 15,200 = 59,500
Cash + 36,400 = 59,500
Cash = 59,500 - 36,400
Cash = 23,100.
So the entry for Cash in the balance sheet is 23,100
Mecca Copy
Balance Sheet
Assets
Cash......................................................$23,100
Accounts receivable.......................... $ 8,800
Supplies inventory............................. $ 5,300 Equipment.......................................... $ 37,500 Accumulated depreciation...............($ 15,200)
Total Assets........................................$59,500
Liabilities
Accounts Payable...............................$2,500
Total Liabilities....................................$2,500
Equity
Common Stock...................................$5,000
Retained Earnings...........................$52,000
Total Equity.......................................$57,000
Total Liabilities and Equity...............$59,500
