The account balances and income statement of Winniford Towing Service at June 30, 2018, follow: LOADING...(Click the icon to view the account balances.)LOADING...(Click the icon to view the income statement for the month.) Requirements 1. Prepare the statement of retained earnings for Winniford Towing Service for the month ending June 30, 2018. 2. What does the statement of retained earnings report? Requirement 1. Prepare the statement of retained earnings for Winniford Towing Service for the month ending June 30, 2018.

A.Retained earnings June 30 $8,200

B.Income statement June 30$7,800

C.The statement of retained earnings will report Changes that occured in the retained earnings for a business entity during a period of time.

Explanation:

A. Preparation of statement of retained earnings

Retained earnings

for the month ending June 30, 2018.

Retained Earning June 1 $3,400

Add Net income for the month $7,800

=$11,200

Less Dividend $3,000

Retained earnings June 30 $8,200

Therefore the Retained earnings for June 30 will be $8,200

2.Preparation of Income statement

Income statement

for the month ending June 30, 2018.

Revenue:

Service Revenue $10,800

Less :Expenses

Salary expenses ($2,200)

Rent expenses ($800)

Net income $7,800

($10,800-$3,000)

Therefore Winniford Towing Service Income statementfor the month ending June 30, 2018 Net income will be $7,800.

C. Based on the above calculation the statement of retained earnings will report

Changes that occured in the retained earnings for a business entity during a period of time.

answer; descriptive statistics;