Dominick Lopez operates a consulting firm called Tech Today. On August 31, the company’s records show the following accounts and amounts for the month of August. Use this information prepare an August statement of retained earnings for Tech Today. (The owner invested $84,000 cash in the company in exchange for common stock during the first week of August.)

Exercise 2-14 Preparing a statement of retained earnings L.O. P3

Dominick Lopez operates a consulting firm called Tech Today. On August 31, the company’s records show the following accounts and amounts for the month of August. Use this information prepare an August statement of retained earnings for Tech Today. (The owner invested $84,000 cash in the company in exchange for common stock during the first week of August.) (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)

   

Cash	$	8,360	Dividends	$	3,000
Accounts receivable		17,000	Consulting fees earned		17,000
Office supplies		3,250	Rent expense		4,550
Land		46,000	Salaries expense		8,000
Office equipment		18,000	Telephone expense		560
Accounts payable		8,000	Miscellaneous expenses		280
Common Stock		4,000	Owner investments in company		80,000

  

TECH TODAY Statement of Retained Earnings For Month Ended August 31
Retained earnings, August 1	$ 0
Add: Net income	3,610
	3,610
Less: Cash dividends	-3,000
Retained earnings, August 31	$ 610

Explanation:

TECH TODAY Income Statement For Month Ended August 31

Revenues:
Consulting fees earned			$	17,000
Expenses:
Salaries expense	$	8,000
Rent expense		4,550
Telephone expense		560
Miscellaneous expenses		280
Total expenses				13,390
Net income			$	3,610