A company has the following account balances at the end of the year.

Accounts Balances

Equipment $ 16,500

Accounts payable 1,100

Salaries expense 23,500

Common stock 11,000

Land 8,500

Notes payable 10,500

Service revenue 29,500

Cash 4,100

Retained earnings?

Required: Use only the appropriate accounts to prepare a balance sheet.

Assets Liabilities

Cash 4, 100 Account Payable 1, 100

Equipment 16,500 Note Payable 10,500

Land 8,500 Equity

Common Stock 11,000

Retained Earnings 6,500

Total Assets 29,100 Total Liab + SE 29, 100

Explanation:

Retained earnings will be calculate using the accounting equation

Assets = liab + equity

29,100 = 1,100 + 10,500 + 11,000 + RE

RE = 29,100 - 1,100 - 10,500 - 11,000 = 6,500