Homework SourseThe Beekeepers reported the following amounts on its balance
The Beekeepers reported the following amounts on its balance sheet on December 31, 2012. Assuming that you have all the information needed, how much retained earnings should be on its balance sheet on this date?
| Cash | $540,000 |
| Notes payable | $300,000 |
| Inventory | $975,000 |
| Contributed (or paid-in) Capital | $2,250,000 |
| Net Property, Plant & Equipment | ? |
| Total Assets | 3,405,000 |
| Accounts Receivable | 30,000 |
| Accounts Payable | 75,000 |
| Retained Earnings | ? |
Solution
As per accounting equation:
Total assets = Total Liabities + Stockholders Equity
$3405000 = ($300000+$75000) + ($2250000 + Retained Earnings)
Retained Earnings = $3405000 - $2625000
Retained Earnings = $780000
Last option is correct
