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Required information [The following information applies to the questions displayed below] Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS).
Required information [The following information applies to the questions displayed below] Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS). Nicole expects that she and two family members will each contribute $11,000 to the business and receive 1,000 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31, 2021: Cash on hand and in the bank, $2,750; amounts due from customers from spa treatments, $1,840; building and equipment, $76,000; amounts owed to beauty supply outlets for spa equipment, $4,720; notes payable to a local bank for $39,470. Cash dividends of $8,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $58,600; wages will be $27,000; the cost of supplies used up will be $10,000; office expenses will be $8,000; and income taxes will be $2,200. Prepare a (forecasted) statement of retained earnings for Nicole's Getaway Spa for the year ended December 31, 2021
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