Help with Accouting balance sheet retained earnings.

Question

Accounting balance sheet: I have $31,400 cash, accounts receivable 10,600, equipment 39,200, snowmobiles 15,400, buildings 500,000, land 425,000, furnishings 58,700, which gives me a total of $1,080,300. Now my liabilities and owners equity are: Notes payable $620,000 accounts payable 54,800, salaries payable 33,500, interest payable 12,000, total of $720,300. Capital stock $135,000, so I need to compute for my retained earnings.

Answer 1

Assets = Liabilities + Equity

 

So your assets total 1,080,300

 

Your liabilities (720,300) plus common stock (135,000) = 855,300

 

So the difference of 1,080,300 - 855,300 = 225,000 must be retained earnings