Warren Enterprises Began Operations During Year 1

question 34

Multiple Choice

Warren Enterprises began operations during Year 1. The company had the following events during Year 1: The business issued $38,000 of common stock to its stockholders.The business purchased land for $30,000 cash.Services were provided to customers for $34,000 cash.Services were provided to customers for $23,000 on account.The company borrowed $34,000 from the bank.Operating expenses of $30,000 were incurred and paid in cash.Salary expense of $2,600 was accrued.A dividend of $22,000 was paid to the stockholders of Warren Enterprises.
What is the balance of the Retained Earnings account as of December 31, Year 1?

• A)$57,000
• B)$2,400
• C)$24,400
• D)$23,000

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Definitions:

Urethra

The tube that carries urine from the bladder to the outside of the body, and in males, also serves as a conduit for semen.

Vagina

The muscular tube leading from the external genitals to the cervix of the uterus in females, part of the reproductive system.

Stratified Squamous Epithelium

A type of tissue composed of multiple layers of flat cells found in areas of the body subject to friction and wear, such as the skin, mouth, and esophagus.

Transitional Epithelium

A form of epithelial tissue capable of expanding and shrinking, situated along the linings of organs like the bladder.