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Using the income statement for Paradise Travel Service shown in Basic Exercise 1-4, preparea retained earnings statement for the year ended May 31, 2018. Everett McCauley invested anadditional $40,000 in the business in exchange for common stock, and $10,000 of dividendswere paid during the year. Retained earnings as of June 1, 2017, were $300,000. 1-4 Income statementThe revenues and expenses of Paradise Travel Service for the year ended May 31, 2018, follow:Fees earned $900,000Office expense 300,000Miscellaneous expense 15,000Wages expense 450,000Prepare an income statement for the year ended May 31, 2018.

Using the income statement for Paradise Travel Service shown in Basic Exercise 1-4, preparea retained earnings statement for the year ended May 31, 2018. Everett McCauley invested anadditional $40,000 in the business in exchange for common stock, and $10,000 of dividendswere paid during the year. Retained earnings as of June 1, 2017, were $300,000. 1-4 Income statementThe revenues and expenses of Paradise Travel Service for the year ended May 31, 2018, follow:Fees earned $900,000Office expense 300,000Miscellaneous expense 15,000Wages expense 450,000Prepare an income statement for the year ended May 31, 2018.

Financial & Managerial Accounting
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter1: Introduction To Accounting And Business
Section: Chapter Questions
Problem 1.5BE
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Using the income statement for Paradise Travel Service shown in Basic Exercise 1-4, prepare
a retained earnings statement for the year ended May 31, 2018. Everett McCauley invested an
additional $40,000 in the business in exchange for common stock, and $10,000 of dividends
were paid during the year. Retained earnings as of June 1, 2017, were $300,000.

1-4 Income statement
The revenues and expenses of Paradise Travel Service for the year ended May 31, 2018, follow:
Fees earned $900,000
Office expense 300,000
Miscellaneous expense 15,000
Wages expense 450,000
Prepare an income statement for the year ended May 31, 2018.

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