CES Question 19 These items are taken from the financial statements of Skysong,

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CES Question 19 These items are taken from the financial statements of Skysong, Inc. for 2017. Retained earnings (beginning of year) Utilities expense $34,810 2,130 69,810 21,880 14,450 4,470 12,000 12,000 70,720 4,970 1,670 3,290 15,280 2,510 39,720 21,950 Accounts payable Salaries and wages payable Common stock Dividends Service revenue Prepaid insurance Maintenance and repairs expense Depreciation expense Accounts receivable Insurance expense Salaries and wages expense Accumulated depreciation-equipment Your answer is correct. Prepare an income statement for the year ended December 31, 2017. Skysong, Inc. For the Year Ended December 31, 2017 70,720 Service Revenue 2,130 Utilities Expense Maintenance and Repairs Expense Depreciation Expense 1.6 3,290 ce

Explanation / Answer

Find the below calculation of Retained earnings

Now total stockholders equity = $12,000+$44,210 = $56,210

and total liabilitites and stockholders equity = $82,560

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Retained earnings beginning balance $   34,810 Add: Net income Service revenue $   70,720 Less: Expenses Utilities expenses $   (2,130) Maintenance and repairs expense $   (1,670) Depreciation expense $   (3,290) Insurance expense $   (2,510) Salaries and wages expense $ (39,720) Net income $   21,400 Less: Dividends $ (12,000) Ending retained earnings $   44,210

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