Answer:
Explanation:
For computing the retained earning ending balance, first, we have to compute the net income. So, the calculation is shown below:
= Service revenue - salaries expense - property tax expense - utilities expense - miscellaneous expense - rent expense
= $154,600 - $65,000 - $2,200 - $7,200 - $3,800 - $23,000
= $53,400
So, the net income would be $53,400
Now, we have to find the ending retained earning balance which equals to
= Beginning retained earning balance + net income - dividend paid
= $39,000 + $53,400 - $57,000
= $35,400
The preparation of the statement of retained earning is presented in the spreadsheet. Kindly find the attachment below:
