Captain Nemo Company Has the Following Balances as of December

Essay

Captain Nemo Company has the following balances as of December 31, 20X5: $\begin{array}{ll}\text { Beginning retained earnings } & \$ 20,000 \\\text { Cost of goods sold } & 46,000 \\\text { Depreciation expens e } & 1,450 \\\text { Dividends } & 4,000\\\text { Income tax expense } & 5,000 \\\text { Interest expense } & 1,050 \\\text { Rent expense } & 1,700 \\\text { Sales } & 68,000 \\\text { Wage expense } & 6,800\end{array}$ Prepare a combined statement of income and retained earnings using the multiple- step method.