Answer:
A. $8,200
B. $7,800
C.The retained earnings will report the changes in retained earnings for a business entity during a time period
Step-by-step explanation:
A. Preparation of the statement of retained earnings
Statement of Retained earnings for the month ending June 30, 2018.
Retained Earning June 1 2018 $3,400
Add Net income for the month $7,800
Total $11,200
Less:Dividend $3,000
Retained earnings June 30 $8,200
($11,200-$3,000)
Therefore the Statement of Retained earnings for June 30 will shows the amount of $8,200
2.Preparation of Income statement
Income statementfor the month ending June 30, 2018.
Revenue:
Service Revenue $10,800
Less :Expenses
Salary expenses ($2,200)
Rent expenses ($800)
Net income $7,800
($10,800-$3,000)
Therefore Winniford Towing Service Income statement Net income show the amount of $7,800.
C. Based on the above calculation the statement of retained earnings will report the changes in retained earnings for a business entity during a time period