Question

During the current year, Austin Enterprise shareholders invested $8,000 in the business. Assume the Austin's retained earning at the beginning of the year was $68,000,  Based on the following end-of-year data, prepare a Retained Earning Statement for Austin Enterprises for the year ended December 31.

Austin Enterprises
Selected Financial Data
For the Year Ended December 31
​	Adjusted Trial Balance
Account Title	Debit	Credit
Cash	26,500
Accounts Receivable	7,000
Supplies	1,000
Equipment	18,500
Accumulated Depr.—Equip.		5,000
Accounts Payable		11,000
Wages Payable		1,000
Common Stock		6,000
Dividends	2,000
Fees Earned		59,500
Wages Expense	19,000
Rent Expense	7,000
Depreciation Expense	3,500	______

Answer 1

Preparation of Retained Earning Statement for Austin Enterprises for the year ended December 31

Austin Enterprises
Income Statement
For the Year Ended December 31
Partricular	Amount ($)	Amount ($)
Revenues
Fees Earned		59,500
Expenses
Wages Expenses	19,000
Rent Expenses	7,000
Depreciation Expense	3,500
Total Expenses		29,500
Net Income		30,000

Austin Enterprises
Retained Earning Statement
For the Year Ended December 31
Partricular	Amount ($)	Amount ($)
Retained Earning at the Beginning of the year		68,000
Add : Net Income	30,000	30,000
		98,000
Less : Dividends		2,000
Retained Earning		96,000