Financial Accounting: EMERGENCY TEST HELP?

[Justin]

I *know* the answer to this problem, I just don't know how they "prepared" it.

Retained earnings.. so simple, yet I'm totally stumped on this. I know you just get the retained earnings of the previous year, add in the net income, less dividends and there you go... the new retained earnings.

But it's with T-charts?

This is what it looks like:

Prepare a retained earnings statement

Retained Earnings
-------------------------------------
Aug. 31 $16,000 | Sept. 1 (2007) $573,750
Aug. 31 $95,000

Dividends
--------------------------------
Nov. 30 $4,000 | Aug. 31 $16,000
Feb. 28 $4,000
May. 31 $4,000
Aug. 31 $4,000

Income Summary
---------------------------------
Aug. 31 $380,000 | Aug. 31 $475,000
31 $95,000
--------------------------

EDIT

Yeah, but how would that look prepared as a retained earnings statement? That's what I want to know.

[npm22]

It looks like all that's left is 462750 in retained earnings. The debits and credits of dividends have cancelled out and so did the income