Using the income statement for Sunset Travel Service shown in Practice Exercise 1-4A, prepare a retained earnings statement for the current year ended April 30, 2014. Craig Daws, the owner, invested an additional $75,000 in the business in exchange for capital stock and cash dividends of $55,000 were paid during the year. Retained earnings as of May 1, 2013, was $250,000.

In Practice Exercise 1-4A, the revenues and expenses of Sunset Travel Service for the year ended April 30, 2014, are listed below.

Fees earned ............$1,673,000

Office expense .......... 488,000

Miscellaneous expense ....... 34,000

Wages expense .......... 660,000