Partial adjusted trial balance for Monty Corp. at December 31, 2017, includes th

ID: 2338592 • Letter: P

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.)

Explanation / Answer

Monty Corp

Statement of Retained Earnings

For the year ended December 31 2017

Beginning balance of Retained Earnings

$ 16,900.00

Add: Net income

$ 10,400.00

Less- Dividends Paid

$ (4,100.00)

Ending balance of Retained Earnings

$ 23,200.00

The balance in Retained Earnings is the balance as of January 1 is $23,200.