Question

E1-32 (similar to) E Question Help The account balances and income statement of Williams Towing Service at June 30, 2018, follow: E (Click the icon to view the account balances.) (Click the icon to view the income statement for the month.) Requirements 1. Prepare the statement of retained earnings for Williams Towing Service for the month ending June 30, 2018. 2. What does the statement of retained earnings report? Requirement 1. Prepare the statement of retained earnings for Williams Towing S Reference Data Table Williams Towing Service Equipment 21,900 Service Revenue 14,000 Retained Earnings, June 1, 2018 Income Statement Office Supplies 1.400 Accounts Receivable 6,500 Notes Payable Month Ended June 30, 2018 7,000 Accounts Payable 5,000 Revenues: Rent Expense 850 Retained Earnings, June 1, 2018 3,650 Service Revenue $ 14,000 2,500 Cash 2,000 Salaries Expense Expenses: Dividends 1,500 Common Stock 7,000 Retained Earnings, June 30, 2018 Salaries Expense 2,500 850 Rent Expense Print Done 3,350 Total Expenses 10,650 Net Income Print Done

Answer 1

Wilson Towing Service Statement of Retained Earnings Month Ended June 30, 2018 Retained Earnings, June 1, 2018 Add: Net Income Sub total Less: Dividends Retained earnings, June 30, 2018 3650 106501 14300) 1500 12800 Net Income = Service revenue - (Rent expenses + Salaries expense) Net Income = 14000 - (850 +2500) = 10650 The statement of retained earnings report that the accumulated earnings of the company after paying the dividends to the shareholders. For the month june 30, 2018 retained earnings are $12800