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Financial Accounting

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How to Solve for Missing Amount in Unadjusted Trial Balance

FINACT-GKHD8C

The unadjusted trial balance for Copter Inc. for the most recent year is shown below.

Unadjusted Trial Balance DEBIT CREDIT
Cash \$100,000
Accounts Receivable \$40,000
Prepaid Rent \$10,000
Equipment \$380,000
Accumulated Depreciation, Equipment \$80,000
Accounts Payable \$40,000
Note Payable \$100,000
Common Stock \$10,000
Dividends \$10,000
Retained Earnings — ? —
Service Revenues \$580,000
Cost of Goods Sold \$140,000
Rent Expense \$50,000
Salaries & Wages Expense \$100,000
Other Operating Expenses \$40,000
Interest Expense \$10,000

How would you solve for the missing Retained Earnings amount?

A

Add up total assets and subtract total liabilities.

B

Compute profit for the period.

C

Add up all the credits and subtract the liabilities.

D

Add up all the debits and subtract all the credits.