Kim Moore owns a small auto repair shop, which has been in operation for a few years. The following statements attempt to summarize the shop's operations for the month of January and its financial position at that time:
MOORE REPAIRS
Statement of Earnings
For the month ending January 31, 2012

MOORE REPAIRS
Statement of Financial Position January 31, 2012

Kim realizes that something is wrong with these statements, because she knows that the statement of financial position is supposed to balance. She is sure that the amounts are correct, but not so sure that she has put everything in its proper place.
Required:
Prepare a corrected statement of earnings for the month of January, and statement of financial position as of January 31. (Hint: You will have to calculate the ending balance of retained earnings.)

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Revenues: Repair fees earned Accounts receivable Bank loan $18,000 15,500 5,500 $39,000 Expenses Rent expense Miscellaneous expenses Parts and supplies on hand Accounts payable Dividends declared S 6,000 600 8,800 3,800 2,000 Net earnings 21,200 $17,800 Assets Shareholders' Equity Cash Parts and supplies used 2,600 Share capital Salaries and wages expense ,000 Retained earnings, January 1 6,600 Total assets $ 7,000 $13,600 $14,600 Total shareholders' equity $20,200