Question

Retained Earnings Statement Retained Earnings Statement The revenues and expenses of Ousel Travel Service for the year ended November 30, 2016, follow Fees earned Office expense Miscelaneous expense Wages expense $1,475,000 320,000 28,000 885,000 Shane Ousel invested an additional $50,000 in the business in exchange for common stock duning the year and cash dividends of $30,000 were paid Retained eanings as of December 1, 2015, was $566,000 Prepare a cetained.eainas statemenat for the year ended November 30, 2016 Refer to the lists of Labeis and Amount Descrptions for the exact wording of the

Answer 1

Answer:

The Retained earnings statement show a balance of $778,000 as on November 30, 2016.

Ousel Travel Service Retained Earnings Statement
Particulars	Amount($)
Retained earnings as on December 1, 2015	$566,000
Add: Net Income	242,000
Less : Cash dividend paid	(30,000)
Retained earnings as on November 30, 2016	$778,000

Working Notes :

Ousel Travel Service Statement of Income for the year ended November 30, 2016
Revenue earned - Fees earned		$ 1,475,000
Less : Expenses -
Wages Expense	$885,000
Office Expense	320,000
Miscellaneous Expense	28,000	(1,233,000)
Net Income		$ 242,000