Question

6. The account balances and income statement of Winniford Towing Service at June 30, 2018, follow: *(Click the icon to view the account balances.) 5(Click the icon to view the income statement for the month.) Requirements f retained earnings for Winniford Towing Service for the month ending June 30, 2018. 1. Prepare the statement 2. What does the statement of retained eamings report? i retained eamings for Winniford Towing Service for the month ending June 30, 2018. Requirement 1. Prepare the statement (1) (2) (3) Retained Earnings, June 1, 2018 (4) (5) Retained Earnings, June 30, 2018 Requirement 2. What does the statement of retained earnings report? The statement of retained eamings reports (6) 4: Data Table Equipment 2$ 19,300 Service Revenue 10,800 Office Supplies 900 Accounts Receivable 7,000 Notes Payable 6,000 Accounts Payable 6,000 Rent Expense 800 Retained Earnings, June 1, 2018 3,400 Cash 2,000 Salaries Expense 2,200 Dividends 3.000 Common Stock 9,000

Answer 1

1) Winniford Towing Service Statement of Retained Earnings Month Ended June 30, 2018 Retained Earnings, June 1, 2018 Net Income for the month $3,400 $7,800 (Ref: Income Statement] $11,200 $3,000 $8,200 Dividends Retained Earnings, June 30, 2018 Reference: $10,800 Winniford Towing Service Income Statement Month Ended June 30, 2018 Revenues: Service Revenue Expenses: Salaries Expense $2,200 Rent Expense $800 Total Expenses Net Income $3,000 $7,800 ($10800 - $3000] 2) Statement of Retained Earnings reports: the changes in retained earnings for a business entity during a time period.