Determination of Net Income and Retained Earnings

The following selected income statement and balance sheet information is available for Floyd Appraisers at the end of the current month:

Supplies $$6,500$ Accounts Payable $$4,000$

Accounts Receivable $17,800$ Salaries Expense $17,000$

Utilities Expense $700$ Appraisal Fees Earned $31,000$

Supplies Expense $1,400$ Common Stock $10,000$

Rent Expense $3,000$ Retained Earnings $-$ Beginning $5,000$

Cash $3,600$

a$.$ Calculate the net income or net loss for the month.

Do not use negative signs with any of your answers.

FLOYD APPRAISERS

Income Statement

For Current Month

Appraisal Fees Earned Answer

$0$

Less: Salaries Expense Answer

$0$

Rent Expense Answer

$3,000$

Utilities Expense Answer

$700$

Supplies Expense Answer

$1,400$

Total Expenses Answer

$0$

Net Income Answer

$0$

b$.$ If Mr$.$ Floyd made no additional investment in the business during the month but received $$6,000$

as a dividend, what is the balance in Retained Earnings at the end of the month? $Answer

$0$