Calculate the new Retained Earnings balance In June, Arial Earhart organized a c

Question

Calculate the new Retained Earnings balance

In June, Arial Earhart organized a corporation to provide aerial photography services. The company, called Arial Views, began operations immediately. The business transactions are shown below: The corporation issued 70,000 shares of capital stock to Arial Earhart in exchange for $70,000 cash Purchased a plane from Expo Aircraft for $230,000. A cash payment of $50,000 was made at the time of the purchase, and a note payable was issued for the remaining balance Issued 40,000 shares of capital stock to a new shareowner in exchange for $40,000 cash Paid Wilson Airport $2,600 to rent office and hangar space for the month Billed customers $8,320 for aerial photographs taken during first half of June Paid $5,880 in salaries earned by employees during the first half of June Paid Harry's Hangar $1,780 for maintenance and repair services on the company plane Collected $4,9p0 of the amounts billed to customers on June 15th Billed customers $16,500 for aerial photographs taken during the second half of the month Paid $5,000 in salaries earned by employees during the second half of the month Received a $2,500 bill from Petro Petroleum for aircraft fuel purchased in June The entire amount is due July 10th Recorded depreciation expense of $1,500 on company plane Declared and paid a $2,000 dividend June 1 June 4 June 5 une 9 June 15 June 15 June 24 June25 June 30 June 30 June 30 June 30 June 30

Explanation / Answer

Retained earning will be $ 6160

Do not consider the capital expenditure and amount recieved from issue of shares. Add all the amount receievabl and reduce all amount payable which are recurring in nature.

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