Las Palmas Company reported the following items on its financial statements for the year ending December 31,2017:

$$\begin{array} { l r l r }
\text { Sales } & \$ 560,000 & \text { Cost of goods sold } & \$ 400,000 \
\text { Salary expense } & 40,000 & \text { Interest expense } & 30,000 \
\text { Dividends } & 30,000 & \text { Income tax expense } & 25,000
\end{array}$$ How much will be reported as retained earnings on Las Palmas' balance sheet at December 31,2017,if this is the first year of operations?
A)$45,000
B)$35,000
C)$85,000
D)Not enough information is provided.

Question

Las Palmas Company reported the following items on its financial statements for the year ending December 31,2017:  
 
$$\begin{array} { l r l r } 
\text { Sales } & \$ 560,000 & \text { Cost of goods sold } & \$ 400,000 \
\text { Salary expense } & 40,000 & \text { Interest expense } & 30,000 \
\text { Dividends } & 30,000 & \text { Income tax expense } & 25,000
\end{array}$$ How much will be reported as retained earnings on Las Palmas' balance sheet at December 31,2017,if this is the first year of operations?
A)$45,000
B)$35,000
C)$85,000
D)Not enough information is provided.

Quizplus · Accepted Answer

The Answer of Las Palmas Company reported the following items on its financial statements for the year ending December 31,2017:  
 
$$\begin{array} { l r l r } 
\text { Sales } & \$ 560,000 & \text { Cost of goods sold } & \$ 400,000 \
\text { Salary expense } & 40,000 & \text { Interest expense } & 30,000 \
\text { Dividends } & 30,000 & \text { Income tax expense } & 25,000
\end{array}$$ How much will be reported as retained earnings on Las Palmas' balance sheet at December 31,2017,if this is the first year of operations?
A)$45,000
B)$35,000
C)$85,000
D)Not enough information is provided.

Las Palmas Company Reported the Following Items on Its Financial