The income statement for the Four Oaks Golf Club Inc. for the month ended July 31 shows
Service Revenue $17,110; Salaries and Wages Expense $8,770; Maintenance and Repairs
Expense $4,360; and Income Tax Expense $1,460. The statement of retained earnings shows an
opening balance for Retained Earnings of $23,600 and Dividends $1,680.
Solution
Net Income for the year = Revenue - Salaries and Wages Expense - Maintenance and Repairs
Expense - Income Tax Expense = 17,110 - 8,770 - 4,360 - 1,460 = $2,520
Statement for closing Retained
Earnings
Particulars $
Retained Earnings at beginning 23,600
Add: Net Income for the year 2,520
Less: Dividend paid (1,680)
Retained Earnings at end 24,440