Yankee Hotel Foxtrot Initiated Operations on July 1, 2018 (A) Determine the Net Income for the Month of July

Essay

Yankee Hotel Foxtrot initiated operations on July 1, 2018. To manage the company officers and managers have requested monthly financial statements starting July 31, 2018. The adjusted trial balance amounts at July 31 are shown below. $\begin{array}{lrlr}&\text { Debits }&&\text { Credits }\\ \text { Cash } & \$ 7,680 & \text { Accumulated Depreciation - Equipment } & \$ 840 \\\text { Accounts Receivable } & 810 & \text { Notes Payable } & 6,000 \\\text { Prepaid Rent } & 1,965 & \text { Accounts Payable } & 2,140 \\\text { Supplies } & 1,160 & \text { Salaries and Wages Payable } & 360 \\\text { Equipment } & 11,400 & \text { Interest Payable } & 40 \\\text { Dividends } & 800 & \text { Unearned Service Revenue } & 580 \\\text { Salaries and Wages Expense } & 7,145 & \text { Common Stock } & 5,000 \\\text { Rent Expense } & 2,740 & \text { Retained Earnings } & 5,640 \\\text { Depreciation Expense } & 665 & \text { Service Revenue } & \underline{14,390} \\\text { Supplies Expense } & 580 & \text { Total credits } & \$ 34,990 \\\text { Interest Expense } & \underline{45} & & \\\text { Total debits } & \$ 390 & &\end{array}$
(a) Determine the net income for the month of July.
(b) Determine the total assets and total liabilities at July 31, 2018 for Yankee Hotel Foxtrot.
(c) Determine the amount that appears for Retained Earnings at July 31, 2018.