Elston company compiled the following financial information as of december 31, 2014: service revenue$700,000common stock150,000equipment200,000operati ng expenses625,000cash175,000dividends 50,000supplies25,000accounts payable100,000accounts receivable75,000retained earnings, 1/1/14375,000elston's stockholders' equity on december 31, 2014 isa)$525,000.b)$550,000.c)$400,000. d)$600,000.

B)$550,000

Explanation:

Equity will be composed for the sum of common stock and Retained Earnings

We will calcualte the Retained Earnings after closing the temporary accounts:

revenue     700,000

expenses (625,000)

net income  75,000

dividends: 50,000

Adjusted RE

beginning + net income - dividends = ending

375,000 + 75,000 - 50,000 = 400,000

Common Stock         150,000

Retained Earnings    400,000

Total SE                    550,000

the first one $24,630

for storing the moneys