Answer: $33,520
Explanation:
Assets = Equity + Liability
Assets = Retained earnings + Common Stock + Liability - because equity is made up of common stock and retained earnings
Retained earnings = Assets - Common Stock - Liability
Assets;
= Accounts receivable + Supplies + Cash + Inventory + Equipment (net)
= 3,500 + 3,720 + 6,360 + 2,970 + 109,200
= $125,750
Liabilities;
= Accounts payable + Interest payable + Unearned service revenue + Notes payable + Salaries and wages payable
= 3,700 + 530 + 820 + 31,000 + 780
= $36,830
Retained earnings = Assets - Common Stock - Liability
= 125,750 - 55,400 - 36,830
= $33,520
