Question

Partial adjusted trial balance for Bramble Corp. at December 31, 2017, includes the following accounts:
Retained Earnings $17,700, Dividends $5,600, Service Revenue $38,800, Salaries and Wages Expense $13,700, Insurance Expense $1,850, Rent Expense $3,840, Supplies Expense $1,530, and Depreciation Expense $1,000. The balance in Retained Earnings is the balance as of January 1. Prepare a retained earnings statement for the year assuming net income is $15,787.

Answer 1

Answer:

Retained earnings statement for year ended December 31, 2017

Opening Retained Earnings Balance      $17,700

Add Net Income                                        $15,787

Less Dividends                                         ($5,600)

Closing Retained Earnings Balance        $27,887

Explanation:

Retained earnings statement shows the Income that is attributable to Common Stock Holders.

Its is prepared by adjusting the Opening Retained Earnings balance with the Income and Dividends declared during the period.