What is the net increase in the the Retained Earnings account? Summerset Fencing
ID: 2484342 • Letter: W
Question
What is the net increase in the the Retained Earnings account?
Summerset Fencing
Balance Sheet
June 2017
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ASSETS
Current Assets:
Cash $ 28,332.90
Short-Term Investments 6,500.00
Accounts Receivable 104,068.00
Notes Receivable 13,280.00
Interest Receivable 286.53
Raw and In-Process Inventory 36,820.80
Prepaid Insurance 3,158.00
Prepaid Rent 16,600.00
Prepaid Property Tax 0.00
Prepaid Advertising 485.00
Office Supplies 735.80
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Total Current Assets $ 210,267.03
Plant and Equipment
Office Equipment $ 35,530.00
Accumulated Depreciation 15,829.00
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Book Value $ 19,701.00
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Shop Equipment 136,101.00
Accumulated Depreciation 34,050.00
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Book Value $ 102,051.00
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Trucks 40,255.00
Accumulated Depreciation 18,929.00
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Book Value $ 21,326.00
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Factory 180,000.00
Accumulated Depreciation 100,376.00
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Book Value $ 79,624.00
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Shipping Facility 32,860.00
Accumulated Depreciation 18,600.00
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Book Value $ 14,260.00
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Total Plant and Equipment 236,962.00
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Total Assets $ 447,229.03
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LIABILITIES
Current Liabilities
Accounts Payable $ 57,759.00
Notes Payable 0.00
Dividends Payable 0.00
Salaries and Wages Payable 12,596.00
Estimated Prop. Taxes Payable 843.00
Income Taxes Payable 4,600.00
Interest Payable 0.00
Unearned Revenue 8,000.00
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Total Current Liabilities $ 83,798.00
Mortgage Note Payable 6,800.00
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Total Liabilities $ 90,598.00
STOCKHOLDERS' EQUITY
Common Stock $ 250,000.00
Retained Earnings 106,631.03
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Total Stockholder's Equity 356,631.03
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Total Liabilities and Owner's Equity $ 447,229.03
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Summerset Fencing
Income Statement
For the Quarter Ended June 30, 2017
______________________________________________________________________
Custom Fencing and Gate Sales $ 359,646.00
Cost of Goods Sold 227,764.90
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Gross Profit From Sales $ 131,881.10
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Operating Expenses:
Office Salaries and Wages Exp. $ 18,923.00
Office Supplies Expense 1,376.20
Truck Operating Expense 1,706.00
Advertising Expense 3,868.25
Credit Card Expense 168.00
Depreciation Expense, Store & Shop Equipment 1,830.00
Depreciation Expense, Trucks 1,514.00
Rent Expense - General 3,809.00
Insurance Expense - General 721.00
Bad Debt Expense 6,849.00
Property Tax Exp. - General 283.00
Utilities Expense - General 599.00
Telephone Expense - General 1,385.00
Bank Service Charges 63.85
License Expense 1,065.00
Professional Services Expense 2,382.00
Miscellaneous Expense 49.75
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Total Operating Expenses $ 46,592.05
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Income From Operations $ 85,289.05
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Other Revenues and Expenses:
Interest Earned $ 1,128.24
Dividends Earned 5,480.83
Gain on Sale of Assets 422.00
Gain on Short-Term Investments 4,952.00
Miscellaneous Revenue 530.00
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Total Other Revenues: $ 12,513.07
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Income Tax Expense $ 17,788.00
Interest Expense 1,503.42
Discounts Lost 397.73
Loss on Sale/Disposal of Assets 449.82
Loss on Short-Term Investments 234.00
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Total Other Expenses: $ 20,372.97
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Net Other Expenses 7,859.90
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Net Income $ 77,429.15
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Summerset Fencing
Statement of Owner's Capital
For the Quarter Ended June 30, 2017
_____________________________________________________________________
Retained earnings, March 31, 2017 $ 44,201.88
Add: Net Income $ 0.00
Less: Dividends declared 15,000.00
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Net increase in retained earnings (15,000.00)
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Retained earnings, June 30 2017 $ 29,201.88
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Explanation / Answer
DETAILS AMOUNT AMOUNT RETAINNED EARNNING MARCH 31 2017 $44201.88 ADD NET INCOME $77429.15 LESS DIVIDEND DECLARED ($15000) NET INCEREASE IN RETAINED EARNNINGS $62429.15 RETAINED EARNNINGS JUNE 30 2017 $106631.03
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