Question

Wolfpack Construction has the following account balances at the end of the year. Accounts Balances Equipment $ 21,000 Accounts payable 2,000 Salaries expense 28,000 Common stock 10,000 Land 13,000 Notes payable 15,000 Service revenue 34,000 Cash 5,000 Retained earnings ? Required: Use only the appropriate accounts to prepare a balance sheet

Answer 1

Answer:

The Retained Earnings of Wolfpack Construction as of the end of the year will be $12,000.

Explanation:

Wolfpack Construction      

Balance Sheets      

As of End of Year      

     

Assets      $

Current Assets:      

Cash      5,000  

Fixed Assets:      

Land      13,000  

Equipment      21,000  

Total Assets      39,000  

Liabilities and Stockholders’ Equity      

Current Liabilities:      

Accounts payable      2,000  

Long Term Liabilities:      

Notes payable      15,000  

Equity:      

Common stock      10,000  

Retained earnings      12,000  

Total Liabilities and Stockholder's Equity      39,000