at the beginning of april, hawk corporation has a balance of $12,000 in the retained earnings account…

at the beginning of april, hawk corporation has a balance of $12,000 in the retained earnings account. during the month of april, hawk had the following external transactions. required: using the external transactions below, compute the balance of retained earnings at april 30. note: decreases should be entered as a negative. retained earnings, april 1: $12,000 transaction 1. issue common stock for cash, $10,000. 2. provide services to customers on account, $7,500. 3. provide services to customers in exchange for cash, $2,200. 4. purchase equipment and pay cash, $6,600. 5. pay rent for april, $1,200. 6. pay employee salaries for april, $2,500. 7. pay dividends to stockholders, $1,500. retained earnings, april 30

at the beginning of april, hawk corporation has a balance of $12,000 in the retained earnings account. during the month of april, hawk had the following external transactions. required: using the external transactions below, compute the balance of retained earnings at april 30. note: decreases should be entered as a negative. retained earnings, april 1: $12,000 transaction 1. issue common stock for cash, $10,000. 2. provide services to customers on account, $7,500. 3. provide services to customers in exchange for cash, $2,200. 4. purchase equipment and pay cash, $6,600. 5. pay rent for april, $1,200. 6. pay employee salaries for april, $2,500. 7. pay dividends to stockholders, $1,500. retained earnings, april 30

Answer

Explanation:

Step1: Identify revenue - related transactions

Revenue from services on account ($7,500) and cash ($10,000) increase retained earnings. These are positive impacts on retained earnings. $7500 + 10000$

Step2: Identify expense - related transactions

Rent expense ($1,200), employee salaries ($2,500) and equipment purchase for cash ($2,200) are expenses that decrease retained earnings. Also, dividends paid ($1,500) decrease retained earnings. These are negative impacts on retained earnings. $-(1200 + 2500+2200 + 1500)$

Step3: Calculate the ending retained earnings

Start with the beginning balance of $12,000$, add the revenue - related amounts and subtract the expense - related amounts. $12000+(7500 + 10000)-(1200 + 2500+2200 + 1500)$ $=12000 + 17500-7400$ $=22100$

Answer:

$22100$