Assume that Sallisaw Sideboards, Inc. had a retained earnings balance of $10,000 on April 1, and that the company had the following transactions during April. Issued common stock for cash, $5,000.
Provided services to customers on account, $2,000.
Provided services to customers in exchange for cash, $900.
Purchased equipment and paid cash, $4,300.
Paid April rent, $800.
Paid workers salaries for April, $700.
What was Sallisaw's retained earnings balance at the end of April?

Question

Quizplus · Accepted Answer

Beginning retained earnings $10,000 + Net income $1,400 - Dividends $0 = Ending retained earnings $11,400.
Net Income = Revenue ($2,000 + $900) - Expenses ($800 + $700) = $1,400.

Assume That Sallisaw Sideboards, Inc