The following account balances appear in the 2021 adjusted trial balance of Blue Devils Corporation:
Cash, $3,800;
Accounts Receivable, $7,800;
Supplies, $17,800;
Equipment, $108,000;
Accumulated Depreciation, $39,000;
Accounts Payable, $24,800;
Salaries Payable, $14,800;
Common Stock, $48,000; and Retained Earnings,.
Required:
1. Prepare the December 31, 2021, classified balance sheet including the correct balance for retained earnings. (Amounts to be deducted should be entered with minus sign.)

Answer and Explanation:

The preparation of the classified balance sheet is presented below:

                                        Blue Devils Corporation

                                                Balance Sheet

                                                    Dec 31, 2021

AssetsAmount ($)Liabilities and shareholder equityAmount ($)

Current assets:                   Current liabilities  

cash$3,800                          Accounts payable                $24,800

Accounts receivable $7,800   Salaries payable                 $14,800

Supplies     $17,800

Total current assets $29,400   Total current liabilities        $39,600  

Long-term assets                     Stockholders equity  

Equipment   $108,000            Common stock               $48,000

Accumulated depreciation-39,000  Retained earnings        $10,800

Total assets$98,400     Total liabilities and stockholders equity$98,400

We find the retained earning balance by applying the accounting equation which is shown below:

Assets   = Liabilities + common stock + retained earnings

$98,400 = $39,600 + $48,000  + retained earning

So, the retained earning is $10,800

i think the answer to your question is b. directive