Question

Trevor Company has the following adjusted trial balance at December​ 31, 2019:

Account	Debit	Credit
Cash	$ 700$700
Accounts Receivable	800800
Inventory	2 comma 2002,200
Supplies	1 comma 7001,700
Prepaid Rent	700700
Land	6 comma 2006,200
Building	39 comma 50039,500
Accumulated Depreciationlong dash—Building		$ 8 comma 400$8,400
Accounts Payable		7 comma 2007,200
Unearned Revenue		3 comma 8003,800
Notes​ Payable, due 2020		2 comma 0002,000
Common Stock		6 comma 9006,900
Retained Earnings		2 comma 9002,900
Dividends	1 comma 1001,100
Service Revenue		33 comma 90033,900
Rent Expense	1 comma 4001,400
Supplies Expense	1 comma 4001,400
Salaries Expense	6 comma 6006,600
Depreciation Expenselong dash—Building	1 comma 3001,300
Utilities Expense	1 comma 5001,500
Totals	​$65,100	​$65,100

What is the Retained Earnings balance at December​ 31, 2019?

A.

$ 20 comma 600

$ 20 comma 600$20,600

B.

$ 21 comma 700$21,700

C.

$ 24 comma 600$24,600

D.

$ 23 comma 500$23,500

Answer 1

	Statement of Retained Earnings
	Beginning Balance		$   2,900.00
Add:	Net Income		$ 21,700.00
Less:	Dividends		$   1,100.00
	Ending Balance		$ 23,500.00
	Answer:	D

Workings:

	Income Statement
	Service Revenue			$ 33,900.00
Less:	Expenses:
	Rent Expense		$ 1,400.00
	Supplies Expense		$ 1,400.00
	Salaries Expense		$ 6,600.00
	Depreciation Expense		$ 1,300.00
	Utilities Expense		$ 1,500.00
	Total Expense			$ 12,200.00
	Net Income			$ 21,700.00