Based on the Information Provided, Prepare the Statement of Retained

question 102

Essay

Based on the information provided, prepare the statement of retained earnings.
1. On June 1 2013, Accounting Consulting incorporated.
2. Accounting Consulting issued 500 shares at $20 per share.
3. In their first month, they have earned $10,000 in revenue.
4. In their first month, they incurred $6,000 in expenses.

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Definitions:

Financing Activities

Transactions and events that affect the long-term liabilities and equity of an organization, including issuing shares, paying dividends, and borrowing or repaying loans.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Payments

Transactions made by individuals or entities to fulfill financial obligations, such as bills, salaries, or loans.

Operating Activities

Activities that are directly related to the day-to-day operations of a business, such as sales, purchase of inventory, and payment of expenses.