Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Prepare the Statement of Retained Earnings from the Adjusted Trial Balance and Income Statement. Within each section of the statement, enter the accounts and the
Prepare the Statement of Retained Earnings from the Adjusted Trial Balance and Income Statement. Within each section of the statement, enter the accounts and the account balances. Then, calculate ending retained earnings. Enter any decreases using a minus sign or parentheses.
SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 SMART TOUCH LEARNING Income Statement (Single-Step) Month Ended December 31, 2016 Balance Debit Credit Revenue: Account Title Cash 28,900 Sales Revenue 156,200 Accounts Receivable Total Revenues 13,300 156,200 Office Supplies 2,700 Prepaid Rent 15,500 Expenses: Inventory 8,800 Cost of Goods Sold 26,600 Furniture 24,400 Selling Expenses 4,400 Accumulated Depreciation--Furniture 8,800 Advertising Expense 3,800 Accounts Payable 1,100 Salaries Expense 22,200 Salaries Payable 2,800 Rent Expense 4,400 Utilities Payable 2,600 Insurance Expense 6,600 Unearned Revenue 8,800 Supplies Expense 1,300 Notes Payable 11,100 Depreciation Expense-Furniture 4,400 Common Stock 13,300 Utilities Expense 800 Retained Earnings 17,700 Income Tax Expense 17,700 Dividends 36,600 Total Expenses 92,200 Sales Revenue 156,200 Net Income 64,000 Cost of Goods Sold 26,600 Selling Expenses 4,400 SMART TOUCH LEARNING Advertising Expense 3,800 Statement of Retained Earnings Salaries Expense 22,200 Depreciation Expense--Furniture 4,400 Month Ended December 31, 2016 Utilities Expense 800 Retained Earnings, December 1, 2016 Income Tax Expense 17,700 Net income for the month 64000 Rent Expense 4,400 Subtotal Insurance Expense 6,600 Dividends -36,600 Supplies Expense 1,300 Retained Earnings, December 31, 2016 Total 222,400 222,400Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started