Final answer:
The balance of each account from the trial balance is reported on the income statement, balance sheet, or statement of retained earnings, depending on whether it's a revenue, expense, asset, liability, or equity account.
Step-by-step explanation:
The balance for each account in the trial balance is reported as a line item on either the income statement, balance sheet, or statement of retained earnings (RE). The classification depends on the type of account. Revenue and expense accounts are reported on the income statement, which helps in calculating the net income for the period. Asset, liability, and equity accounts are reported on the balance sheet, which provides a snapshot of the company's financial position at a specific point in time. Lastly, retained earnings, which represent the cumulative amount of net income retained in the company, are reported on the statement of retained earnings.
This statement of retained earnings shows the changes in retained earnings over the reporting period. It starts with the beginning balance of retained earnings, adds net income from the income statement, and subtracts any dividends paid to shareholders.