On March 1, the Amount of Retained Earnings in Richard's

question 210

Essay

On March 1, the amount of retained earnings in Richard's Catering Company was $150,000. During March, stockholders were paid $31,000 in dividends from the business. The amounts of the various assets, liabilities, revenues, and expenses are as follows: $$\begin{array} { l l } \text { Accounts payable } & \$ 10,250 \\\text { Accounts receivable } & 45,950 \\\text { Cash } & 23,840 \\\text { Fees earned } & 64,950 \\\text { Insurance expense } & 1,275 \\\text { Land } & 85,400 \\\text { Miscellaneous expense } & 1,210 \\\text { Prepaid insurance } & 3,000 \\\text { Rent expense } & 9,000 \\\text { Salary expense } & 20,300 \\\text { Supplies } & 900 \\\text { Supplies expense } & 525 \\\text { Utilities expense } & 2,800\end{array}$$ Present, in good form, a) an income statement for March, b) a statement of retained earnings for March, and c) a balance sheet as of March 31.

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Definitions:

Next Day Off

The following day when an individual is scheduled to be free from work or obligations.

Illegal

Activities or actions that are prohibited by law and subject to criminal penalties or civil remedies.

Disputed Debt

A debt that is not agreed upon by the debtor and creditor, often leading to legal action or negotiation for resolution.

Illusory Promise

An agreement that appears to be a contract but lacks the necessary elements to bind the parties, often due to vague or unenforceable terms.