Preparation of a Retained Earnings Statement
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Prepare a statement of retained earnings for 2006 for Skyzaa Company.
SkyZaa Company
Income Statement
for the year ending December 31, 2006
Revenue:
Sales Revenue $42,000
Interest Revenue 30
Rent Revenue 300
Total Revenue: $42,330
Expenses:
Wages Expense $21,600
Depreciation Expense 300
Utilities Expense 220
Insurance Expense 100
Rent Expense 9,000
Income Tax Expense 2,900
Total Expenses: $34,120
Current Net Income $8,210
SkyZaa Company
Balance Sheet
for the year ending December 31, 2006
Assets:
Cash $1,500
Accounts Receivable 2,000
Interest Receivable 30
Prepaid Insurance 2,300
Notes Receivable 3,000
Equipment 12,000
Less: Accumulated Depreciation (300)
Total Assets: $20,530
Liabilities:
Accounts Payable $1,600
Accrued Expenses Payable 3,820
Income Taxes Payable 2,900
Unearned Rent Revenue 600
Total Liabilities: $8,920
Owner's Equity
Current Net Income $8,210
Contributed Capital 2,400
Retained Earnings 1,000
Total Owner's Equity $11,610
Total Liabilties and Owner's Equity $20,530
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Solution Summary
This posting contains a formatted MS Exel spreadsheet which illustrates how to prepare a retained earnings statement from available financial information.
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For your convenience, I have attached a formatted MS Excel file containing the text below. I have also attached a reference source that you may find useful.
SkyZaa Company
Statement of Retained Earnings
for the year ending December 31, 2006
Notes:
Balance, January ...
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