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Preparation of a Retained Earnings Statement

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See attached Excel.

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.

Solution Preview

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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