The assets and liabilities of Gator Pest Control Services, Inc. at May 31, 2018, the end of the current year, and its revenue and expenses for the year are listed below. The capital stock was $100,000 at June 1, 2017, the beginning of the current year. Mr. Al Gator invested an additional $15,000 in the business in exchange for capital stock during the year.
Accounts Payable |
$1,200 |
Miscellaneous Expense |
$220 |
|
Accounts Receivable |
$12,340 |
Office Expense |
$560 |
|
Cash |
$32,990 |
Supplies |
$1,670 |
|
Fees Earned |
$78,350 |
Wages Expense |
$26,770 |
|
Land |
$65,000 |
Dividends |
$3,000 |
|
Building |
$143,670 |
Retained Earnings |
$90,000 |
REQUIRED: Prepare a statement of retained earnings for the current year ended May 31, 2018.
Solution:
Gator Pest Control Services, Inc. | |
Income Statement | |
For year ended May 31, 2018 | |
Particulars | Amount |
Fees Earned | $78,350.00 |
Expenses: | |
Miscellenous Expenses | $220.00 |
Office Expense | $560.00 |
Wages Expense | $26,770.00 |
Net Income | $50,800.00 |
Gator Pest Control Services, Inc. | |
Statement of retained earnings | |
For year ended May 31, 2018 | |
Particulars | Amount |
Beginning retained earnings | $90,000.00 |
Add: Net Income | $50,800.00 |
Less: Dividends | $3,000.00 |
Ending Retained Earnings | $137,800.00 |
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