Question

determine the increase or decrease in retained earnings for August

UIVIVUTUS MISLUUD CAPUT 650 2,500 0 3. HERITAGE REALTY Unadjusted Trial Balance August 31, 2016 Credit -0 -0 Cash Supplies Accounts Payable Common Stock Dividends Sales Commissions Rent Expense Office Salaries Expense Automobile Expense Supplies Expense Miscellaneous Expense Debit 32,585 850 - 0 - 0 2,500 -0 3,250 3,000 1,580 1,300 650 45.715 1,275 30,000 -0 14.440 OOOO 0 -0 - 0 45.715 4. a. b. $ $ $ 14.440 9,780 4,660 5. MacBook

Answer 1

Income statement

Sales commissions		14,400
Expenses:
Rent expense	3,250
Office salaries expense	3,000
Automobile expense	1,580
Supplies expense	1,300
Miscellaneous expense	650
Total expenses		- 9,780
Net income		$4,620

Increase in retained earnings for August = Net income - Dividends

= 4,620 - 2,500

= $2,120

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