SUSQUEHANNA EQUIPMENT RENTALS

Statement of Retained Earnings

For the Year Ended December 31, Year 1

Retained earnings, December 1, Year 1

Add: Net income

14,912

Less: Dividends

2,500

Retained earnings, December 31, Year 1

12,412

SUSQUEHANNA EQUIPMENT RENTALS

Income Statement

For the Year Ended December 31, Year 1

Revenue:

Rental fees earned

45,300

Expenses

Salaries expense

11,100

Maintenance expense

700

Utilities expense

670

Rent expense

3700

Office Supplies expense

960

Depreciation expense

2700

Interest expense

616

20,446

Income before income tax expense

24,854

Income tax expense

9,942

Net income

14,912