The income statement for the month of June, 2015 of Camera Obscura Enterprises contains the following information: $\begin{array}{lr}\text { Revenues }&&\$7,000\
\text { Expenses: }\\text { Salaries and Wages Expense } & \$ 3,000 \
\text { Rent Expense } & 1,500 \
\text { Advertising Expense } & 800 \
\text { Supplies Expense } & 300 \
\text { Insurance Expense } & 100\
\text { Total expenses }&&5,700\
\text { Net income }&&\$1,300
\end{array}$ At June 1, 2015, Camera Obscura reported retained earnings of $35,000. The company had no dividends during June. At June 30, 2015, the company will report retained earnings of
A) $29,300.
B) $35,000.
C) $36,300.
D) $42,000.

Question

Quizplus · Accepted Answer

The retained earnings at the end of June is calculated by adding the net income for June ($1,300) to the retained earnings at the beginning of June ($35,000), resulting in $36,300.

The Income Statement for the Month of June, 2015 of Camera