Computing Retained Earnings and Net Income The following selected balance sheet amounts are from Aerial Inc. as of December 31, 2020. Selected Balance Sheet Amounts Assets Llabilities Cash $5,600 Accounts payable $ 1,920 Accounts recelvable 2,000 Note payable 4,000 Supplies 1,520 Stockholders' equity Equipment 10,000 Common stock 4,000 Pald-in capital in excess of par 2,000 Required a. Compute retalined earnings as of December 31, 2020, assuming retained earnings is the only missing category in the selected balance sheet amounts above. b. Determine net income assuming that the balance in retained earnings on January 1, 2020, was $1,000; dividends declared during 2020 were $1,800; and no other items affected retained earnings during 2020. S

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.