Using the income statement for Sentinel Travel Service shown in Practice Exercise 1-4B, prepare a retained earnings statement for the current year ended August 31, 2014. Barb Schroeder, the owner, invested an additional $36,000 in the business in exchange for capital stock and cash dividends of $18,000 were paid during the year. Retained earnings as of September 1, 2013, was $300,000.

In Practice Exercise 1-4B, The revenues and expenses of Sentinel Travel Service for the year ended August 31, 2014, are listed below.

Fees earned ...........$750,000

Office expense ......... 295,000

Miscellaneous expense ...... 12,000

Wages expense ......... 450,000