Based on the Following Information,what Would Be the Beginning Balance

question 122

Multiple Choice

Based on the following information,what would be the beginning balance in the Retained Earnings Account,assuming all accounts have a normal balance?
$\begin{array}{lrlr}\text { Cash } & \$ 6,754 & \text { Dividends } & \$ 2,000 \\\text { Accounts receivable } & 13,733 & \text { Consulting fees earned } & 13,71 \\\text { Office supplies } & 2,625 & \text { Rent expense } & 3,67 \\\text { Land } & 37,153 & \text { Salaries expense } & 6,64 \\\text { Office equipment } & 14,535 & \text { Telephone expense } & 560 \\\text { Accounts payable } & 6,463 & \text { Miscellaneous expense } & 280 \\\text { Common stock } & 54,490 & \text { Retained Earnings } & ?\end{array}$

• A)$0
• B)$13,718
• C)$13,155
• D)$13,284
• E)$2,563

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Definitions:

Insurance Company

A business that provides financial protection and compensation for losses in exchange for the payment of premiums.

Basis

The amount of investment in an asset for tax purposes, used to calculate gain or loss upon sale of the asset.

Related Party

Individuals or entities that have a close connection to a taxpayer that can affect financial transactions and tax reporting, such as family members or entities under common control.

Deductible

An expense that can be subtracted from income for tax purposes, reducing the taxable income.