At the beginning of April, Chickadee Corporation has a balance of $11,500 in the Retained Earnings account. During the month of April, Chickadee had the following external transactions. Required:Using the external transactions below, compute the balance of Retained Earnings at April 30. (Decreases should be entered as a negative.) TransactionBalanceRetained earnings, April 1$11,5001. Issue common stock for cash, $10,000.2. Provide services to customers on account, $7,000.3. Provide services to customers in exchange for cash, $1,700.4. Purchase equipment and pay cash, $6,100.5. Pay rent for April, $1,200.6. Pay employee salaries for April, $2,000.7. Pay dividends to stockholders, $1,250.Retained earnings, April 30

Using the external transactions above, computation of the balance of retained earnings at April 30:…

Answered: At the beginning of April, Chickadee…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At the beginning of April, Chickadee Corporation has a balance of $11,500 in the Retained Earnings account. During the month of April, Chickadee had the following external transactions.

Required:
Using the external transactions below, compute the balance of Retained Earnings at April 30. (Decreases should be entered as a negative.)

Transaction
Balance
Retained earnings, April 1
$
11,500
1. Issue common stock for cash, $10,000.
2. Provide services to customers on account, $7,000.
3. Provide services to customers in exchange for cash, $1,700.
4. Purchase equipment and pay cash, $6,100.
5. Pay rent for April, $1,200.
6. Pay employee salaries for April, $2,000.
7. Pay dividends to stockholders, $1,250.
Retained earnings, April 30

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