Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I want to know which ones are the Retained Earnings in it. Event Interpretation, Simple Accounting System & General Purpose Financial Statement Randi had a

I want to know which ones are the Retained Earnings in it.

image text in transcribed Event Interpretation, Simple Accounting System & General Purpose Financial Statement Randi had a tough time finding a summer job when she went home from college, so she decided to go into business for herself mowing lawns. Randi's Lawn Care, Inc.(RLC, Inc.) is the business name. Randi's corporation had the following economic events during the month of June. June 1 Used $200 of her own money and RLC, Inc. borrowed $450 from Randi's father for financing. 2 Rented a used pickup truck from an uncle for $85 per month. Paid for the first month's use. 3 Rented a lawnmower ($75 per month), an edger ($50 per month), and a wheelbarrow ($10 per month) at an equipment rental store. Paid only the June rental fees in full. 4 RLC, Inc. paid $75 for 30 gallons of gasoline and paid $48 for various other supplies. 16 During the first two weeks, performed $528 of lawn-mowing services. Customers paid in cash. 18 Received a $35 bill (on open account) for a newspaper advertisement that had appeared earlier in the month. (RLC, Inc. will pay the bill when due on July 10.) 29 During the last half of the month, performed $507 of lawnmowing services and collected the cash. 30a On Saturday, Randi mowed and trimmed lawn in front of HomeTownBank. HomeTownBank will pay $75 for the service on Monday July, 2. 30b Randi physically counted the remaining inventory of supplies. The results of which include 24 gallons of gas and 1/3 of other supplies are still on-hand at the close of business on June 30.. 30c RLC, Inc. paid back one third of the loan from Randi's father plus $5 for June's interest. 30d RLC, Inc. declared and paid a dividend of $125 to the sole shareholder (i.e., Randi). 30e Randi mailed a $135 RLC Inc., check payable to the equipment rental store for July's equipment rental. For this event Randi will need to set up a new asset account titled Prepaid Rent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Financial Accounting

Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby

7th Edition

1265440166, 978-1265440169

More Books

Students also viewed these Accounting questions

Question

Determine Leading or Lagging Power Factor in Python.

Answered: 1 week ago

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago