The following are all of the accounts of Attawfik Company that have a balance at the end of August. All accounts have normal balances:

Accounts receivable	$36,000	Cash	$27,000
Equipment	59,000	Advertising expense	5,000
Service revenues earned	75,000	Accounts payable	31,000
Rent expense	3,600	Dividends	24,000
Office supplies	1,500	Salaries expense	30,000
Notes payable	22,000	Common stock	20,000
		Retained earnings 1st August	58,100

a. Calculate net income b. Determine the amount of retained earnings to be shown on the August 31 balance sheet.

This is a group work to discuss and give the correct answer

All students have to participate