The adjusted trial balance of Warbocks Corporation at December 31, 2017 includes the following accounts: Retained Earnings $12,600; Dividends $5,000; Service Revenue $30,000; Salaries and Wages Expense $15,000; Insurance Expense $2,000; Rent Expense $4,500; Supplies Expense $500; and Depreciation Expense $1,000. Prepare a retained earnings statement for the year.

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Keesha

Business

21 August, 23:13

The adjusted trial balance of Warbocks Corporation at December 31, 2017 includes the following accounts: Retained Earnings $12,600; Dividends $5,000; Service Revenue $30,000; Salaries and Wages Expense $15,000; Insurance Expense $2,000; Rent Expense $4,500; Supplies Expense $500; and Depreciation Expense $1,000. Prepare a retained earnings statement for the year.

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Vaughn Glass · Answer 1

Warbocks Corporation

Statement of retained earnings for the year ended December 31, 2017

Amount in $

Opening retained earnings 12,600

Net income for the year 7,000

Dividend (5,000)

Closing retained earnings 14,600

Explanation:

The retained earnings statement shows the movement in the retained earnings balance between the start and end of the year.

This includes the net earnings and dividend paid during the year.

Net income = $30,000 - $15,000 - $2,000 - $4,500 - $500 - $1,000

= $7,000