Answer: The Net loss Position is -$7,900. The distributable retained earnings (post dividend payment and loss recognition) is $3,600 and the Net Asset Position of Plevin Company is $21,050
Explanation:
The response below looks all muddied up, but i have attached an excel file to help you understand how i arrived at the conclusions above.
Plevin Company      
Income Statemenet for the Year Ended July 31, 2017      
      
Revenue:      
Service Revenue  	65,000  
Rent Revenue  	6,000  
Net Income    71,000  
      
Less Expenses:      
Salaries & Wages    56,400  
Utilities  	15,500  
Depreciation  	7,000  
Net Expenses    78,900  
      
Net Loss    -7,900  
      
schedule of distributable Profit      
Opening Balance of Retained Earnings    27,000  
Add Net Loss for the year    -7,900  
Less Dividend Payment    15,500  
Closing balance of Retained Earnings    3,600  
Plevin Company    
Balance Sheet as at July 31, 2017    
    
Fixed Assets:    
Equipment    15,600
less Accumulated Depreciation    -7,500
Net Book Value    8,100
    
Current Assets    
Cash  	10,050  
Account receivable  	9,500  
  	19,550  
    
Current Liabilities    
Accounts Payable  	4,800  
Unearned rent revenue  	1,800  
  	6,600  
    
Working Capital (Current Asset less Current Liability)    12,950
    
Net Assets    21,050
    
    
Shareholders Fund:    
Common Stock    17,450
Add Retained Earnings    3,600
Net Shareholders Fund    21,050