Question

Required Information The following information apples to the questions displayed below.] Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS). Nicole expects that she and two family members will each contribute $10,000 to the business and receive 1,000 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31, 2018: Cash on hand and in the bank, $2,250: amounts due from customers from spa treatments, $1,790, building and equipment. $71,000, amounts owed to beauty supply outlets for spa equipment, $4,670, notes payable to a local bank for $38.970. Cash dividends of $3,000 will be paid to the stockholders during the year. Nicole also forecasts that first year sales revenues will be $43,600, wages will be $24.500, the cost of supplies used up will be $7,500, office expenses will be $5.500, and income taxes will be $1700. 2. Prepare a (forecasted) statement of retained eamings for Nicole's Getaway Spa for the year ended December 31, 2018 NICOLE'S GETAWAY SPA Statement of Retained Earnings forecasted) Retained Earnings, January 1 2018 Add Net Income Less Dividends Reta ned Earnings. December 31, 2018 5 < Prey 4 5 6 0 6 !! Next > a

Answer 1

Statement of retained earnings (Forecasted)

Retained earnings, January 1,2018	0
Add: Net income	4400
Less: Cash dividend	-3000
Retained earnings, December 31,2018	1400