The following accounts and balances were drawn from the records of Carolina Company on December 31, Year 1: The amount of Carolina's retained earnings after closing on December 31, Year 1 was:

Question

The following accounts and balances were drawn from the records of Carolina Company on December 31, Year 1:  The amount of Carolina's retained earnings after closing on December 31, Year 1 was:

Quizplus · Accepted Answer

Assets ($4,000 + $3,400 + $3,200) = Liabilities ($1,800) + Common Stock ($3,900) + Retained Earnings
Retained Earnings = $10,600 − $5,700 = $4,900

The Following Accounts and Balances Were Drawn from the Records