Question

We-Sell Realty, organized August 1, 2014, is owned and operated by Omar Farah. How many errors can you find in the following statements for We-Sell Realty, prepared after its first month of operations?


Omar Farah
Retained Earnings Statement
August 31, 2013
Retained earnings, August 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0
Less dividends during August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   10,000
$(10,000)
Additional issuance of capital stock on August 1, 2014 . . . . . . . . . . .    15,000
$ 5,000
Net income for August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
Retained earnings, August 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . $30,000





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  • CreatedFebruary 28, 2014
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