Question

Lynnwood, Inc. had a retained earnings balance of $12,000 on April 1, and the company had the following transactions during April. Issued common stock for cash, $5,000. Provided services to customers on account, $2,000. Provided services to customers in exchange for cash, $1900. Purchased equipment and paid cash, $4,300. Paid April rent, $800. Paid employees' salaries for April, $700. What was Lynnwood, Inc.'s retained earnings balance at the end of April

Answer 1

Answer:

$14,400

Explanation:

Calculation to determine What was Lynnwood, Inc.'s retained earnings balance at the end of April

LYNNWOOD, Inc.'s retained earnings balance at the end of April

Retained earning balance , April 1 $12,000

Add Service to customer $2,000

Add Service to customer $1,900

Less Rent ($800)

Less salaries ($700)

Retained earning April 30th $14,400

Therefore Lynnwood, Inc.'s retained earnings balance at the end of April is $14,400