Using the income statement for Paradise Travel Service shown in Basic Exercise 1-4, prepare a retained earnings statement for the year ended May 31, 2018. Everett McCauley invested an additional $40,000 in the business in exchange for common stock, and $10,000 of dividends = were paid during the year. Retained earnings as of June 1, 2017, were $300,000.
In Exercise
Fees earned.....................................$900,000
Office expense..................................300,000
Miscellaneous expense...........................15,000
Wages expense..................................450,000