Use the following to answer questions 1519 TIM Property Mana

Use the following to answer questions 15-19 TIM Property Management had the following account balances at the end of December: Accounts Balances R1618, loo BRE aIS,000 NT 334, 300 Beginning Retained eamings Land/Building Utilities expense E 52,100 Dividends or SE 45,000 $215,000 RE 464 52,100 a3 00 Cash 62,000 Salaries expense E 412,000 Common stock SE 300,000 Office supplies A 300 Service revenue R 698,400 Accounts payable L 42,800

Solution

Net income=Service revenue-Utilities expense-Salaries expense

=(698400-52100-412000)=$234300

Addition to retained earnings=Net income-Dividends

=(234300-45000)=$189300

Hence ending retained earnings=Beginning retained earnings+Additon to retained earnings

=(215000+189300)=$404300

Hence ending equity=(300,000+404300)

=$704300.