Answer:
RE = 27,200
Explanation:
We will calculate the Retained Earnings using the accounting equation.
Assets = Liab + Equity
Assests:
cash        6,200
equipment   81,500 Â
total assets; Â 87,700
Liabilities:
Account Payable 13,600
Notes Payable   22,300 Â
Total Laibilities   35,900
Equity:
Common stock 24,600
RE: X
We will plug these values int o the accounting equatio nand solve for retained earnings.
Assets = Liab + Equity
87,700 = 35,900 + 24,600 + Retained Earnings
87,700 - 35,900 - 24,600 = RE
RE = 27,200