The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The common stock was $126,600 and the retained earnings were $63,000 at April 1, the beginning of the current year. During the year, shareholders purchased an additional $25,700 in stock. Accounts Amount Accounts Amount Accounts payable $2,000 Miscellaneous expense $1,040 Accounts receivable 10,340 Office expense 1,270 Cash 21,420 Supplies 1,670 Fees earned 72,220 Wages expense 23,960 Land 47,000 Dividends 14,500 Building 157,630 Required: Prepare a statement of retained earnings for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. If a net loss is incurred or there is a decrease in owner’s equity, enter that amount as a negative number using a minus sign. Labels and Amount Descriptions Labels Expenses For the Year Ended March 31 March 31 Amount Descriptions Change in retained earnings Common stock Dividends Net income for the year Net income Net loss for the year Net loss Retained earnings Retained earnings, April 1 Retained earnings, March 31 Total expenses Total assets Total liabilities and stockholders' equity Retained Earnings Statement Prepare a statement of retained earnings for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. If a net loss is incurred or there is a decrease in owner’s equity, enter that amount as a negative number using a minus sign. Thompson's Computer Services Retained Earnings Statement 1 2 3 4 5

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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Question

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The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The common stock was $126,600 and the retained earnings were $63,000 at April 1, the beginning of the current year. During the year, shareholders purchased an additional $25,700 in stock.

Accounts	Amount	Accounts	Amount
Accounts payable	$2,000	Miscellaneous expense	$1,040
Accounts receivable	10,340	Office expense	1,270
Cash	21,420	Supplies	1,670
Fees earned	72,220	Wages expense	23,960
Land	47,000	Dividends	14,500
Building	157,630

Required:

Prepare a statement of retained earnings for the current year ended March 31. Be sure to complete the statement heading. Refer to the lists of Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. If a net loss is incurred or there is a decrease in owner’s equity, enter that amount as a negative number using a minus sign.

Labels and Amount Descriptions

Labels
Expenses
For the Year Ended March 31
March 31
Amount Descriptions
Change in retained earnings
Common stock
Dividends
Net income for the year
Net income
Net loss for the year
Net loss
Retained earnings
Retained earnings, April 1
Retained earnings, March 31
Total expenses
Total assets
Total liabilities and stockholders' equity