Question

The income statement for the Windsor, Inc. for the month ended July 31 shows Service Revenue $18,760, Salaries and Wages Expense $9,350, Maintenance and Repairs Expense $2,970, and Income Tax Expense $1,360. The statement of retained earnings shows an opening balance for Retained Earnings of $21,890 and Dividends $1,610.

Answer 1

Answer:

Ending retained earnings_25360

Explanation:

revenue___________________18760

Salaries and wages expense____9350

manteinance and repairs_______2970

Income tax expense__________1360

Net Income ________________5080

 

retained earnings open balance_21890

dividends___________________1610

 

 

Beginning RE + Net Income (Profit or Loss) – Dividends = Ending RE  

 

=21890+5080-1610=ending RE  

 

Ending retained earnings_25360