Chapter 4 Accounting Information Systems 183
Hearts, P.C.
Retained Earnings Statement
For the Month Ended April 30, 2007Retained earnings, April 1, 2007 $17,483
Net income for April $3,513
Less dividends 1,250
Increase in retained earnings 2,263
Retained earnings, April 30, 2007 $19,746Hearts, P.C.
Balance Sheet
April 30, 2007Assets
Current assets:
Cash $ 2,361
Accounts receivable 8,095
Supplies 185
Prepaid insurance 400
Total current assets $11,041
Property, plant, and equipment:
Equipment $22,995
Less accumulated depreciation 3,180
Total property, plant, and equipment 19,815
Total assets $30,856Liabilities
Current liabilities:
Accounts payable $ 810
Salary payable 300
Total liabilities $ 1,110Stockholders’ Equity
Capital stock $10,000
Retained earnings 19,746
Total stockholders’ equity 29,746
Total liabilities and stockholders’ equity $30,8568.
Professional Fees 8,240
Retained Earnings 8,240
Retained Earnings 4,727
Salary Expense 2,025
Rent Expense 800
Laboratory Expense 545
Insurance Expense 435
Utilities Expense 360
Supplies Expense 350
Depreciation Expense 80
Miscellaneous Expense 132
Retained Earnings 1,250
Dividends 1,250