Using the income statement for Sunset Travel Service shown in Practice Exercise 1-4A, prepare a retained earnings
Question:
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
Step by Step Answer:
Corporate Financial Accounting
ISBN: 978-1133952411
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac