Answer:
Net Income $23,588
Retained Earnings $140,088
Explanation:
To calculate the value of the retained earning at the end of the next year it's necessary to find the income of the current year and then deduct the dividends paid during the year, the remaining value adds to the retained earnings.
This value that we get of retained earnings at the end of the year, it's the value missing at the end of the year to explain the accounting equation of Assets = Liabilitites + Equity
Income Statement Blink
Trucking fees earned $ 135,000
Depreciation expenses -$ 22,987
Salaries expenses -$ 63,315
Office Supllies expenses -$ 13,500
Repair expenses -$ 11,610
Income $ 23,588
Retained Earnings Report
Opening retained earnings $ 135,500
Add: Net Income $ 23,588
Subtotal $ 159,088
Less: Dividens -$ 19,000
Total $ 140,088
BALANCE SHEETS Dec 31
Cash $ 8,600
Accounts Receivable $ 16,500
Office Supplies $ 2,000
TOTAL CURRENT ASSETS $ 27,100
Equipment $ 173,000
Accum Depreciation Truck -$ 35,638
Land $ 75,000
TOTAL NONCURRENT ASSETS $ 212,362
TOTAL ASSETS $ 239,462
Accounts Payable $ 12,600
Interest Payable $ 3,000
TOTAL CURRENT LIABILITIES $ 15,600
Long Term Notes Payable $ 52,000
TOTAL NONCURRENT LIABILITIES $ 52,000
TOTAL LIABILITIES $ 67,600
Common Stock $ 31,774
<u>Retained Earnings $ 140,088
</u>
TOTAL EQUITY $ 171,862
