Question

Partial adjusted trial balance for Ravine Corporation at December 31, 2014, includes the following accounts: Retained Earnings $17,232; Dividends $5,172; Service Revenue $37,692; Salaries and Wages Expense $13,780; Insurance Expense $1,747; Rent Expense $4,009; Supplies Expense $1,500; and Depreciation Expense $869. 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

Step-by-step explanation:

Before preparing the retained earnings statement, first, we have to compute the ending balance of retained earning which is shown below:

The ending balance of retained earnings = Beginning balance of retained earnings + net income - dividend paid

= $17,232 + $15,787 - $5,172

= $27,847

The preparation of the retained earnings statement is presented in the spreadsheet. Kindly find the attachment below: