These November 1998 transactions affected the retained earnings account of the Larsson Corporation:

In reviewing the account, Lars Larsson realized that the new bookkeeper had made the following error: Transaction (27) was a payment for wage expense.

\section*{Instructions}

(a) Prepare an income statement for the month of November.

(b) Prepare a retained earnings statement for November, assuming that the beginning retained earnings balance was \(\$ 9,500\) on November 1 .

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Transaction Amount (7) $ 700 (9) 6,000 (10) 350 (13) 4,000 (16) 300 Description Property tax expense Service revenue Utilities expense Wage expense Utilities expense (18) 1,250 Rent expense (19) 450 Advertising expense (22) 2,000 Service revenue (23) 800 (25) 600 Dividends Repair expense (27) 400 Auto expense was. (31) 9,000 (32) 1,600 (33) 4,000 (34) 500 Service revenue Dividends Wage expense Utilities expense