# 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?
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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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