8. Award: 2 out of 2.00 points2 out of 2.00 points
Score:Score: 19.43/20 Points 97.15 %
As of December 31, 2019, Armani Company’s financial records show the following items and amounts.
Cash $ 11,900
Accounts receivable 10,900
Supplies 7,900
Equipment 6,900
Accounts payable 14,800
Common stock 15,900
Retained earnings, Dec. 31, 2018 4,900
Retained earnings, Dec. 31, 2019 6,900
Dividends 14,900
Consulting revenue 36,800
Rental revenue 25,800
Salaries expense 21,900
Rent expense 13,900
Selling and administrative expenses 9,900
Required:
Prepare a year-end statement of retained earnings for Armani Company.
ARMANI COMPANY
Statement of Retained Earnings
For Year Ended December 31, 2019
Retained earnings, December 31, 2018 $4,900 !
Add: Net income !
16,900 !
21,800
Less: Dividends !
14,900 !
Retained earnings, December 31, 2019 $6,900
Required:
Prepare a year-end statement of retained earnings for Armani Company.
$
ARMANI COMPANY
Statement of Retained Earnings
For Year Ended December 31, 2019
Retained earnings, December 31, 2018 4,900
Add: Net income 16,900
Less: Dividends 14,900
Retained earnings, December 31, 2019
21,800
$6,900
F
F
Explanation:
ARMANI COMPANY
Income Statement
For Year Ended December 31, 2019
Revenues
Consulting revenue $36,800
Rental revenue 25,800
Total revenues $62,600
Expenses
Salaries expense 21,900
Rent expense 13,900
Selling and administrative expenses 9,900
Total expenses 45,700
Net income $16,900
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