Question

Kolander Company has the following accounts and balances at the end of the​ year:

Answer 1

Answer:

$149,000

Explanation:

The basic accounting equation is; ASSETS = LIABILITIES + CAPITAL

Retained earnings is the missing figure in order to balance the equation. Salaries Expense will not be considered as it is an Income Statement item and not enough Data is provided to prepare an Income Statement.

ASSETS  

Building $57,000  

Land $41,000  

Equipment $61,500  

Accounts Receivable $31,000  

Short-term investments $7,000  

Cash and Cash Equivalents $82,000  

Total Assets $279,500  

 

LIABILITIES  

Accounts Payable $38,000  

Interest Payable $1,500  

Income Taxes Payable $10,000  

Long Term Notes Payable $56,000  

Total Liabilities $105,500  

 

EQUITY  

Common Stock $25,000  

Retained Earnings $149,000  

Total Equity $279,500