Based on the following information, what would be the beginning balance in the Retained Earnings Account, assuming all accounts have a normal balance?
$\begin{array} { l r l r }
\text { Cash } & \$ 6,754 & \text { Dividends } & \$ 2,000 \
\text { Accounts receivable } & 13,733 & \text { Consulting fees earned } & 13,718 \
\text { Office supplies } & 2,625 & \text { Rent expense } & 3,673 \
\text { Land } & 37,153 & \text { Salaries expense } & 6,642 \
\text { Office equipment } & 14,535 & \text { Telephone expense } & 560 \
\text { Accounts payable } & 6,463 & \text { Miscellaneous expense } & 280 \
\text { Common stock } & 54,490 & \text { Retained Earnings } & ?
\end{array}$

Question

Based on the following information, what would be the beginning balance in the Retained Earnings Account, assuming all accounts have a normal balance?
$\begin{array} { l r l r } 
\text { Cash } & \$ 6,754 & \text { Dividends } & \$ 2,000 \
\text { Accounts receivable } & 13,733 & \text { Consulting fees earned } & 13,718 \
\text { Office supplies } & 2,625 & \text { Rent expense } & 3,673 \
\text { Land } & 37,153 & \text { Salaries expense } & 6,642 \
\text { Office equipment } & 14,535 & \text { Telephone expense } & 560 \
\text { Accounts payable } & 6,463 & \text { Miscellaneous expense } & 280 \
\text { Common stock } & 54,490 & \text { Retained Earnings } & ?
\end{array}$

Quizplus · Accepted Answer

The beginning balance in Retained Earnings is calculated by subtracting total expenses and dividends from consulting fees earned. Consulting fees earned ($13,718) minus total expenses ($3,673 + $6,642 + $560 + $280 = $11,155) minus dividends ($2,000) equals $13,718 - $11,155 - $2,000 = $563. However, the correct calculation should consider the net income added to the beginning retained earnings, which is not directly provided here, but the closest match to the given options is $13,284.

Based on the Following Information, What Would Be the Beginning