Michael Company Had the Following Data What Is the Balance in Retained Earnings on December 31,2015

question 96

Multiple Choice

Michael Company had the following data:
$\begin{array} { l } \text { Retained earnings, January 1, 2015}&\$45,000 \\ \text {Depreciation expense for 2015 }&\$ 7,000\\ \text {Cost of goods sold for 2015 }&\$102,000 \\ \text { Paid-in capital, January 1, 2015}&\$26,000 \\ \text {Rent expense for 2015 }&\$12,000 \\ \text {Sales for 2015 }&\$ 194,000\\ \text {Dividends declared in 2015 }&\$ 15,000\\ \text {Wage expense for 2015 }&\$40,000 \\ \text {Prepaid rent, January 1, 2015 }&\$ 2,000\\\end{array}$

What is the balance in Retained Earnings on December 31,2015?

• A) $61,000
• B) $63,000
• C) $65,000
• D) $74,000

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Definitions:

Positive Reinforcement

The process of encouraging or increasing a behavior by presenting a favorable outcome or reward upon the occurrence of the behavior.

Inventory Of Rewards

A catalog or list of rewards and incentives available within an organization, intended to motivate and acknowledge employee contributions.

Contingent Reinforcement

The provision of rewards or consequences based on the occurrence of a specific behavior, used as a strategy to increase or decrease that behavior.

Ethical Issues

Matters or situations that require a choice between right and wrong actions, often guided by moral principles.