Super Business Consulting Pty Ltd is a consulting company which provides advisory services related to advertising. It started its operations in June 2020 and completed the following transactions during its first month of operations. The company spends $ 3,000 each fortnight on alternative Friday ($ 300 for each working day) starting from June 12, 2020 to pay salaries to its employees.

At the end of June 2020, accountants estimated that Office supplies on hand are worth $ 750. Depreciation expenses for office equipment for June 2020 are $ 200. Accrued interest on loan from ZNA Bank is $ 125 for June 2020.

Question:

Calculate the balance of retained earnings as on 30 June, 2020.

S. No. Date Description of the transaction 1 June 1, 2020 Issued shares for $ 50,000 cash. 2 June 1, 2020 Purchased office supplies worth $ 1,000 in cash. 3 June 1, 2020 Paid $1,500 in cash for the insurance policy. The insurance policy is for six months and will get expired in November, 2020. 4 June 2, 2020 Borrowed $ 30,000 cash from ZNA Bank for five years. The annual interest rate is 5 percent and interest expenses are to be paid yearly. The first interest payment is scheduled on June 1, 2021. 5 June 2, 2020 Paid $ 3,000 in cash towards the monthly rents for June 2020 and July 2020. 6 June 2, 2020 Purchased office equipment worth $ 10,000 in cash. 7 June 5, 2020 Provided consulting services worth $ 12,000 to a client, Mark, on credit. 8 June 11, 2020 Received $ 15,000 in cash from a client, Laura, for services to be performed in July 2020. 9 June 12, 2020 Made fortnightly salary payment of $ 3,000 to employees. 10 June 17, 2020 Received $ 12,000 in cash from Mark. 11 June 26, 2020 Made fortnightly salary payment of $3,000 to employees. 12 June 30, 2020 Received utility bill of $ 250 towards electricity expenses for the month of June 2020. The due date for the bill is July 15, 2020