Question

Partial adjusted trial balance for Monty Corp. at December 31, 2017, includes the following accounts: Retained Earnings $ 16,900, Dividends $ 4,100, Service Revenue $35,700, Salaries and Wages Expense $ 13,100, Insurance Expense $ 1,960, Rent Expense $ 3,960, Supplies Expense $ 1,400, and Depreciation Expense $ 880. 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.)

Answer 1

Answer:

Explanation:

                                                $                               $

Service Revenue                                                 35,700

Less :

Salaries & wages                13,100

Insurance expenses            1,960

Rent expenses                     3960

Supplies Expense                1400

Depreciation Expense          880

                                                                              21,300

Net Income                                                            14,400

Retained Earnings Statement

Retained Earnings at the beginning                 16,900

Net Income                                                         14,400

                                                                            31,300

Dividends paid                                                    (4100)

Retained earnings at the end                           27,200