Hancock Company reported the following account balances

at December $31,2027$:

Sales revenue $...............$ $$284,000$

Dividends $...................$ $ $51,000$

Supplies $....................$ $ $37,000$

Accounts payable $............$ $ $59,000$

Building $....................$ $$106,000$

Copyright $...................$ $ $24,000$

Insurance expense $...........$ $ $33,000$

Cash $........................$ $ $57,000$

Notes payable $...............$ $$112,000$

Equipment $...................$ $ $61,000$

Income tax expense $..........$ $ $45,000$

Salaries payable $............$ $ $29,000$

Patent $......................$ $ $73,000$

Advertising expense $.........$ $ $42,000$

Inventory $...................?$

Retained earnings $...........$ $$165,000($at Jan. $1,2027)$

Rental revenue $..............$ $ $67,000$

Cost of goods sold $..........$ $$119,000$

Land $........................?$

Common stock $................$ $$224,000$

Trademark $...................?$

Accounts receivable $.........$ $ $72,000$

The following additional information is available:

$1)$ Total current assets at Dec. $31,2027$ are equal

to $40\%$ of the total assets at Dec. $31,2027.$

$2)$ Total intangible assets at Dec. $31,2027$ are equal

to $30\%$ of the total equity at Dec. $31,2027.$

Calculate the balance in the retained earnings account

at December $31,2027.$

Answer rating: 100% (QA)

To calculate the balance in the Retained Earnings account at December 31 2007 we need to consider th... View the full answer