IPOD CORPORATION
IPOD Corporations' end-of-year Balance Sheet consisted of the following amounts.
$\begin{array}{llll}
\text { Cash } & \$ 180,000 & \text { Accounts receivable } & \$ 700,000 \
\text { Property, plant \& equipment } & 950,000 & \text { Long-term debt } & 600,000 \
\text { Capital stock } & 1,000,000 & \text { Accounts payable } & 350,000 \
\text { Retained earnings } & ? & \text { Inventory } & 540,000
\end{array}$
- Refer to the information provided above for IPOD Corporation. What is IPOD's retained earnings balance at the end of the current year?

Question

IPOD CORPORATION 
IPOD Corporations' end-of-year Balance Sheet consisted of the following amounts.
$\begin{array}{llll}
\text { Cash } & \$ 180,000 & \text { Accounts receivable } & \$ 700,000 \
\text { Property, plant \& equipment } & 950,000 & \text { Long-term debt } & 600,000 \
\text { Capital stock } & 1,000,000 & \text { Accounts payable } & 350,000 \
\text { Retained earnings } & ? & \text { Inventory } & 540,000
\end{array}$
- Refer to the information provided above for IPOD Corporation. What is IPOD's retained earnings balance at the end of the current year?

Quizplus · Accepted Answer

Retained earnings = Total assets - Total liabilities - Share capital= (180,000 + 950,000 + 700,000 + 540,000) - (600,000 + 350,000 + 1,000,000)= 2,370,000 - 1,950,000= $420,000

IPOD CORPORATION IPOD Corporations' End-Of-Year Balance Sheet Consisted of the Following

IPOD CORPORATION
IPOD Corporations' End-Of-Year Balance Sheet Consisted of the Following