Randall's Service Company Began Operations on January 1, 2019

question 91

Multiple Choice

Randall's Service Company began operations on January 1, 2019. The following Trial Balance was prepared on December 31, 2019. Capital contributions during the year were $54,000. Randall's Service Company
Trial Balance
December 31, 2019
What is the December 31, 2019 balance of Retained Earnings?

• A) $33,100
• B) $19,300
• C) $20,500
• D) $25,500

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Definitions:

Social Security Tax

A charge imposed on both workers and their employers to finance the Social Security system, offering financial support to retirees, individuals with disabilities, and children of workers who have passed away.

Income Tax Decrease

A reduction in the rate at which individuals or corporations are taxed on their income, potentially leading to increased disposable income and consumption.

Federal Deficit

The amount by which a government's expenditures exceed its tax revenues.

High Income Earners

Individuals or entities that receive income significantly above the average for their region or country, often subject to higher tax rates.