The following information is for Rick’s Bed and Breakfast:
a. Retained earnings on February 1, 2011, were $150,000.
b. In February, revenues were $35,000 and expenses were $65,000.
c. In March, revenues were $89,000 and expenses were $74,000.
d. In April, revenues were $73,000 and expenses were $62,000.
e. The only dividends declared and paid were in April for $5,000.
1. Calculate the retained earnings balance for the three months ended April 30, 2011, for Rick’s Bed and Breakfast.
2. Show the retained earnings portion of the statement of changes in shareholders’ equity for the three months ended April 30, 2011.