Schumacher Company uses the perpetual inventory system, and it engaged in the following transactions during 2014: 

1) Started the business by issuing common stock for $7,500 cash 

2) Paid cash to purchase $5,000 of inventory 

3) Sold inventory that cost $3,000 for $7,250 cash 

4) Incurred and paid operating expenses, $250 Schumacher Company engaged in the following transactions during 2015: 

1) Paid cash to purchase $5,800 of inventory 

2) Sold inventory that cost $7,000 for $15,150 cash 

3) Incurred and paid operating expenses, $500

The amount of Retained Earnings at December 31, 2014 is:

• $4,250.
• $11,150.
• $11,650.
• $4,000.

Answer rating: 100% (QA)

Required solution Gr... View the full answer