Sanchez Company engaged in the following transactions during Year 1: 1)Started the business by issuing $13,300 of common stock for cash.2)The company paid cash to purchase $8,000 of inventory.3)The company sold inventory that cost $5,400 for $11,150 cash.4)Operating expenses incurred and paid during the year, $4,900.Sanchez Company engaged in the following transactions during Year 2:1)The company paid cash to purchase $11,600 of inventory.2)The company sold inventory that cost $9,600 for $17,750 cash.3)Operating expenses incurred and paid during the year, $5,900.Note: Sanchez uses the perpetual inventory system. What is the amount of retained earnings that will be shown on the balance sheet at December 31, Year 2?

Question

Quizplus · Accepted Answer

The Answer of Sanchez Company engaged in the following transactions during Year 1: 1)Started the business by issuing $13,300 of common stock for cash.2)The company paid cash to purchase $8,000 of inventory.3)The company sold inventory that cost $5,400 for $11,150 cash.4)Operating expenses incurred and paid during the year, $4,900.Sanchez Company engaged in the following transactions during Year 2:1)The company paid cash to purchase $11,600 of inventory.2)The company sold inventory that cost $9,600 for $17,750 cash.3)Operating expenses incurred and paid during the year, $5,900.Note: Sanchez uses the perpetual inventory system. What is the amount of retained earnings that will be shown on the balance sheet at December 31, Year 2?

Sanchez Company Engaged in the Following Transactions During Year 1