Reference no: EM132641309

The? asset, liabilities, and equities of Durham Design Studio have the following balances at December 31?, 2018. The retained earnings was $33,000 at the beginning of the year. At year? end, common stock was $11,000 and dividends were $54,000.

Note payable $ 10,200               office furniture $46,600
rental expense 19,000               utilities expense 7,000
cash 4,000                              account payable 3, 200
office supplies 4,900                service revenue 153,800
salaries expense 62,000            account receivable 8, 200
property tax expense 1,500          miscellaneous 4,000

Durham design studio
income statement
year ended December 31, 2018

Revenues:

service revenue $153, 800

expenses:

salaries expense 62,000
rent expenses 19,000
utilities expense 7,000
miscellaneous expense 4,000
property tax expense 1,500

total expenses 93,500
net income $60,300

Problem 1: Prepare the statement of retained earnings for Durham Design Studio for the year ending December 31?, 2018.