On October 1, Natalie King organized Real Solutions, a new consulting firm. On October 31, the company's records show the following items and amounts.

Exercise 1-15 Preparing a statement of retained earnings L.O. P2

On October 1, Natalie King organized Real Solutions, a new consulting firm. On October 31, the company's records show the following items and amounts.

Cash	$	11,000		Cash dividends	$	2,000
Accounts receivable		13,000		Consulting fees earned		15,000
Office supplies		23,375		Rent expense		2,700
Land		36,000		Salaries expense		6,000
Office equipment		18,000		Telephone expense		760
Accounts payable		41,250		Miscellaneous expenses		580
Common stock		57,165

Using the above information to prepare an October statement of retained earnings for Real Solutions. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)

REAL SOLUTIONS Statement of Retained Earnings For Month Ended October 31
Retained earnings, Oct. 1	$ 0
Add: Net income	4,960
	4,960
Less: Cash dividends	2,000
Retained earnings, Oct. 31	$ 2,960

Explanation:

REAL SOLUTIONS Income Statement For Month Ended October 31
Revenues:
Consulting fees earned				$	15,000
Expenses:
Salaries expense	$	6,000
Rent expense		2,700
Miscellaneous expenses		580
Telephone expense		760
Total expenses					10,040
Net income				$	4,960