How do I calculate Retained Earnings, December 31, 2020, after adjusting all the entries?
The following are the trial balance and the other information related to Gary Consulting Engineer. GARY CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2020 Debit Credit Cash $29,500 Accounts Receivable 48,500 $798 Allowance for Doubtful Accounts Supplies 2,330 Prepaid Insurance 1,510 Equipment 29,000 Accumulated Depreciation-Equipment 6,792 Notes Payable 7,200 Common Stock 10,000 Retained Earnings 25,658 Service Revenue 106,126 Rent Expense 10,374 Salaries and Wages Expense 33,460 Utilities Expenses 1,130 Office Expense 770 $156,574 $156,574 Fees received in advance from clients $5,820, which were recorded as revenue. 1 Services performed for clients that were not recorded by December 31, $5,072. 2. Bad debt expense for the year is $1,486. 3. Insurance expired during the year $442 4. 5. Equipment is being depreciated at 10% per year. Gary gave the bank a 90-day, 10% note for $7,200 on December 1, 2020. 6. Rent of the building is $798 per month. The rent for 2020 has been paid, as has that for January 2021, and recorded as Rent Expense. 7. Office salaries and wages earned but unpaid December 31,2020, $2,357 8. From the trial balance and other information given, prepare annual adjusting entries as of December 31,2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No.Account Titles and Explanation Debit Credit 1. Service Revenue 5,820 Unearned Service Revenue 5,820 2. Accounts Receivable 5072 Service Revenue 5072 Bad Debt Expense 3. 1486 Allowance for Doubtful Accounts 1486 4. Insurance Expense 442 Prepaid Insurance 442 5. Depreciation Expense 2,900 Accumulated Depreciation-Equipment 2,900 6. Interest Expense 60 Interest Payable 6 7. Prepaid Rent 798 Rent Expense 798 8. Salaries and Wages Expense 2,357 Salaries and Wages Payable 2,357 Prepare an income statement for 2020. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) GARY CONSULTING ENGINEER Income Statement For the Year Ended December 31, 2020 Revenues Service Revenue 105,378 $ Expenses i Rent Expense 9576 $ Office Expense 770 Salaries and Wages Expense 35,817 Utilities Expenses i 1130 Depreciation Expense 2,900 i Bad Debt Expense i 1486 Insurance Expense 442 Interest Expense i 60 Total Expenses 52,181 Net Income/(Loss) 53,197 Prepare a retained earnings statement for 2020. Gary paid a $16,580 cash dividend during the year. (recorded in Retained Earnings.) (List items that increase owner's capital first.) GARY CONSULTING ENGINEER Statement of Retained Earnings For the Year Ended December 31, 2020 Retained Earnings, January 1 Add Net Income/(Loss) 53,197 i Dividends Less 16,580 Retained Earnings, December 31
