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Consider the following account starting balances and journal transactions involving these accounts. Use T-accounts to record the starting balances and organize the offsetting entries for
Consider the following account starting balances and journal transactions involving these accounts. | |||
Use T-accounts to record the starting balances and organize the offsetting entries for the transactions. | |||
The starting balance of Cash is $12,500 | |||
The starting balance of Inventory is $5,200 | |||
The starting balance of Retained Earnings is $23,900 | |||
Date | Accounts and Explanation | Debit | Credit |
9-Mar | Retained Earnings | 3 | |
Cash | 3 | ||
Consumed good or service and paid expense with cash | |||
10-Mar | Cash | 20 | |
Inventory | 16 | ||
Retained Earnings | 4 | ||
Sold and delivered product to customer | |||
11-Mar | Cash | 35 | |
Retained Earnings | 35 | ||
Sold, delivered, and received payment for service with no clear associated cost | |||
What is the final amount in Retained Earnings? |
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