The Income Statement for the Month of June, 2011 of Taylor

Multiple Choice

The income statement for the month of June, 2011 of Taylor Enterprises contains the following information: $\begin{array}{lr}\text { Revenues }&&£7,000\\\text { Expenses: }\\\text { Wages Expense } & £ 2,000 \\\text { Rent Expense } & 1,000 \\\text { Supplies Expense } & 300 \\\text { Advertising Expense } & 200 \\\text { Insurance Expense } & 100\\\text { Total expenses }&&3,600\\\text { Net income (loss) }&&£(3,400) \end{array}$
At June 1, 2011, Taylor reported Retained Earnings of $£ 35,000$ . The company paid no dividends during June. At June 30, 2011, the company will report Retained Earnings of

A) $£ 35,000$ .
B) $£ 42,000$ .
C) $£ 38,400$ .
D) $£ 31,600$ .