A1 Supply Company compiled the following financial information as of December 31, 2025: Service revenue Common stock Equipment Salaries and wages expense Rent expense Depreciation expense Cash Dividends Supplies Accounts payable Accounts receivable Retained earnings, 1/1/2025 $1120000 240000 320000 400000 100000 500000 280000 80000 40000 160000 120000 320000 A1's retained earnings balance at December 31, 2025 is $40000. $320000. $440000. $360000.

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is