At the beginning of April, Owl Corporation has a balance of $13,000 in the Retained Earnings account.

Question:

At the beginning of April, Owl Corporation has a balance of $13,000 in the Retained Earnings account. During the month of April, Owl had the following external transactions.

1. Issue common stock for cash, $11,000.

2. Provide services to customers on account, $8,500.

3. Provide services to customers in exchange for cash, $3,200.

4. Purchase equipment and pay cash, $7,600.

5. Pay rent for April, $1,100.

6. Pay employee salaries for April, $3,500.

7. Pay dividends to stockholders, $2,000.

Required:

Using the external transactions above, compute the balance of Retained Earnings at April 30.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...