Prepare a statement of retained earnings (from the adjusted trial balance in part 3) for the three months ended March 31, 2020.

 
 
 

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Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019. Santana Rey decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts. No. 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. Account Title 119 Merchandise inventory 126 128 Computer supplies Prepaid insurance 131 Prepaid rent 163 office equipment 164 Accumulated depreciation-office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 236 307 318 319 Wages payable Unearned computer services revenue Connon stock Retained earnings Dividends Computer services revenue 403 413 Sales 414 Sales returns and allowances 415 Sales discounts 502 612 613 623 637 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Debit $48,402 0 0 0 3,050 0 2,748 0 -0 0 0 620 1,827 865 8,190 21,700 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ Credit 320 1,200 1,160 740 1,300 74,722 7,960 0 oc 0 Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019. Santana Rey decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts. No. 101 Cash 106.1 Alex's Engineering Co. 106.2 Wildcat Services 106.3 Easy Leasing 106.4 IFM Co. 106.5 Liu Corp. 106.6 Gomez Co. 106.7 Delta Co. 106.8 KC, Inc. 106.9 Dream, Inc. Account Title 119 Merchandise inventory 126 128 Computer supplies Prepaid insurance 131 Prepaid rent 163 office equipment 164 Accumulated depreciation-office equipment 167 Computer equipment 168 Accumulated depreciation-Computer equipment 201 Accounts payable 210 236 307 318 319 Wages payable Unearned computer services revenue Connon stock Retained earnings Dividends Computer services revenue 403 413 Sales 414 Sales returns and allowances 415 Sales discounts 502 612 613 623 637 640 Rent expense 652 Computer supplies expense 655 Advertising expense 676 Mileage expense 677 Miscellaneous expenses 684 Repairs expense-Computer Cost of goods sold Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Debit $48,402 0 0 0 3,050 0 2,748 0 -0 0 0 620 1,827 865 8,190 21,700 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ Credit 320 1,200 1,160 740 1,300 74,722 7,960 0 oc 0

Answer rating: 100% (QA)

To prepare the Statement of Retained Earnings for the three months ended March 31 2020 well start with the retained earnings at the beginning of the p... View the full answer