Question

CHEGG The adjusted trial balance of Bramble Corporation at December 31, 2022 includes the following accounts: Retained Earnings $10,584; Dividends $4,200; Service Revenue $25,200; Salaries and Wages Expense $12,600; Insurance Expense $1,680; Rent Expense $3,780; Supplies Expense $420; and Depreciation Expense $840. Prepare a retained earnings statement for the year. (List items that increase retained earnings first.)

Answer 1

Answer:

                               Bramble Corporation

                   Retained earnings statement for the year

                                                               Amount in $

Opening Balance                                     10,584

Net income                                                5,880

Dividend declared and paid                   (4,200)                      

Closing Balance                                       12,264

Explanation:

The retained earnings statements shows the movement in the opening and closing balance of retained earnings. The elements of these movements are the dividend paid and the net income for the year.

Net income is the difference between the sales and expenses of the business.

Net income

= $25,200 - $12,600 - $1,680 - $3,780 - $420 - $840

= $5,880