Question

Partial adjusted trial balance for Levin Corporation at December 31, 2017, includes the following accounts: Retained Earnings $17,200, Dividends $6,000, Service Revenue $32,000, Salaries and Wages Expense $14,000, Insurance Expense $1,800, Rent Expense $3,900, Supplies Expense $1,500, and Depreciation Expense $1,000. 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:

Before preparing the retained earning statement, First, we have to compute the ending balance of the retained earning account.  

The formula to compute the retained earnings ending balance is shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

= $17,200 + $10,400 - $6,000

= $21,600

The ending balance of retained earnings is  shown in the attached spreadsheet.  

Answer 2

Answer:

please refer to the explanation section

Explanation:

Retained income statement is a financial statement that shows changes in the Retained income Balances. net income increase

the Retained income Balance while Dividends Paid decreases the Retained income balance.

The closing Balance of the retained income is determined by taking opening retained income balance add net income and subtract dividends paid.

Retained income closing balance = $17200

Net income  = $6000

Dividends paid = $6000

retain income opening balance = not given

Retained Income Statement

*opening balance = 12800

net income         = 10400

dividends paid  =(6000)

closing Balance = 17200

*The opening balance was not given, to find the opening balance we use the closing balance ,dividends and net income to work out the opening. to workout opening balance we take closing balance add back dividends and subtract net income

* Opening Balance = 17200 + 6000-12800 = 12800