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How do I calculate retained earnings? What is the correct answer here? Thank you and thumbs up!! Required Information [The following information applies to the

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How do I calculate retained earnings? What is the correct answer here? Thank you and thumbs up!!

Required Information [The following information applies to the questions displayed below.] Tunstall, Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Cash Accounts receivable Supplies Prepaid insurance Service trucks Accumulated depreciation Other assets Accounts payable Wages payable Income taxes payable Tunstall, Incorporated Unadjusted Trial Balance At December 31 Notes payable (3 years; 10% interest due each September 30) Common stock (5,200 shares outstanding) Additional paid-in capital Retained earnings Service revenue Wages expense Remaining expenses (not detailed; excludes income tax) Income tax expense Totals Debit 46,200 10,900 550 770 17,700 10,760 16, 200 33,250 136,330 Credit 8,700 2,320 14,000 1,986 17,874 4,600 86,850 136,330 Data not yet recorded at December 31 Included: a. The supplies count on December 31 reflected $180 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $770. c. Depreciation expense for the current year, $3,900. d. Wages earned by employees not yet paid on December 31, $620. e. Three months of Interest expense (for the note payable borrowed on October 1 of the current year) was incurred in the current year. f. Income tax expense, $5,680. 2-a. Prepare an Income statement (with Operating Income and Other Items sections) that include the effects of the preceding six transactions. 2-b. Prepare a classified balance sheet that include the effects of the preceding five transactions. Complete this question by entering your answers in the tabs below. Required 2a Required 2b Prepare a classified balance sheet that include the effects of the preceding six transactions. Note: Amounts to be deducted should be indicated by a minus sign. Current assets Cash Accounts receivable Supplies Total current assets Assets Other assets Service trucks Accumulated depreciation Total assets TUNSTALL, INCORPORATED Balance Sheet At December 31 of the Current Year $ 46,200 10,900 180 Answer is not complete. $ 57,280 17,700 (12,600) $ 62,380 Current liablities Liabilities and stockholders' equity Accounts payable Wages payable Income taxes payable Total current liabilities Note payable, long-term Total liabilities Stockholders' equity Common stock Retained earnings Additional paid-in capital Total stockholders' equity Total liabilities and stockholders' equity $ S S S $ 2,320 620 5,680 8,620 14,000 22,620 1,986 8,000 17,874 27,860 50,480 (3)

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