Question

Partial adjusted trial balance for Pina Colada Corp. at December 31, 2017, includes the following accounts: Retained Earnings $16,700, Dividends $4,700, Service Revenue $36,300, Salaries and Wages Expense $15,000, Insurance Expense $1,980, Rent Expense $4,000, Supplies Expense $1,590, and Depreciation Expense $900. The balance in Retained Earnings is the balance as of January 1.

Prepare a retained earnings statement for the year assuming net income is $10,400. (List items that increase retained earnings first.)
PINA COLADA CORP
Retained Eanings Statement
For the Year Ended December 31, 2017
Retained Earnings, January 1 16,700
Add 10,400
Net Income/ (Loss)
27,100
Less 4,700
Dividends
Retained Earnings, December 31 $22,400

Answer 1

Answer and Explanation:

The presentation of the retained earnings statement for the year is presented below:

Pina Colada Corp

Retained Earnings Statement

For the year Ended December 31, 2017

Retained Earnings, as on January 1 $16,700

Add: Net Income $10,400

Less: Dividend paid -$4,700

Retained Earnings, as on December 31 $22,400