Financial Accounting

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How to Solve for Missing Amount in Unadjusted Trial Balance


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?


Add up total assets and subtract total liabilities.


Compute profit for the period.


Add up all the credits and subtract the liabilities.


Add up all the debits and subtract all the credits.