Answer:
correct option is d. $96,000
Explanation:
given data
Total Assets = $225,000
Total Liabilities = $100,000
Common Stock, $25,000
Retained Earnings = $100,000
to find out
balance in the retained earnings account at the end of the year
solution
we apply here equation of Retained earnings Ending balance that is
Retained earnings Ending balance = Retained earnings Beginning balance + Net income - Dividends .........................1
and we know that net income is here
Retained earnings Ending balance = Retained earnings Beginning balance + (Revenues - Expenses) - Dividends
so put here value
Retained earnings Ending balance = 100,000 + (46,000 - $30,000)-20,000
so
Retained earnings Ending balance will be = 100,000 + 16,000 - $20,000
Retained earnings Ending balance is = $96,000
so correct option is d. $96,000
