Chapter 2, Problem 2.5E

Understand the components of retained earnings (LO2–2)

At the beginning of April, Owl Corporation has a balance of $13,000 in the Retained Earnings account. During the month of April, Owl had the following external transactions.

1.    Issue common stock for cash, $11,000.

2.    Provide services to customers on account, $8,500.

3.    Provide services to customers in exchange for cash, $3,200.

4.    Purchase equipment and pay cash, $7,600.

5.    Pay rent for April, $1,100.

6.    Pay employee salaries for April, $3,500.

7.    Pay dividends to stockholders, $2,000.

Required:

Using the external transactions above, compute the balance of Retained Earnings at April 30.