Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company's records show the following accounts and amounts for the month of August Cash Accounts receivable office supplies Land office equipment Accounts payable Dividends $25,370 Consulting fees earned 27,010 9,570 5, 620 880 530 102,100 22,370 Rent expense 5,260 Salaries expense 44,010 Telephone expense 20,020 Miscellaneous expenses 10,540 Common stock 6,020 Exercise 2-17 Preparing a statement of retained earnings LO P3 Use the above information to prepare an August statement of retained earnings for Help Today,(

                                Help Today

                 Statement  of Retained Earnings

           For the Month Ended on August 31, 202X

Retained earnings at the beginning of the period:          $0

Net Income:                                                                 $10,410

Dividends:                                                                  ($6,020)

Retained earnings at the end of the period              $4,390

Explanation:

First we must organize the numbers and prepare an income statement:

Consulting fees earned $27,010

Rent expense ($9,570)

Salaries expense ($5,620)

Telephone expense ($880)

Miscellaneous expenses ($530)

Net income: $10,410

then a balance sheet:

Balance Sheet

Assets:

Cash $25,370

Accounts receivable $22,370

Office supplies $5,260

Land $44,010

Office equipment $20,020

Total assets: $117,030

Liabilities and Equity:

Accounts payable $10,540

Common stock $102,100

Total liabilities and equity: $112,640

+ Retained earnings $4,390

Total: $117,030

Dividends 6,020

two ways to determine retained earnings:

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%