Question

EXTP Brief Exercise 4-17 (Part Level Submission) The income statement for the Windsor, Inc. for the month ended July 31 shows Service Revenue $16,870, Salaries and Wages Expense $8,870, Maintenance and Repairs Expense $3,800, and Income Tax Expense $1,210. The statement of retained earnings shows an opening balance for Retained Earnings of $22,600 and Dividends $1,700. (a)

Answer 1

Answer: $23,890

Calculations:

Income statement
Service revenue		$16,870
Expenses:
Salaries and wages expense	$8,870
Maintenance and repairs expense	$3,800
Income tax expense	$1,210
Total expenses		$13,880
Net income		$2,990

Statement of retained earnings
Beginning Retained earnings	$22,600
Add: Net income	$2,990
(Less): Dividends	($1,700)
Ending retained earnings	$23,890