Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are an accountant at AJ Inc. preparing the Statement of Rel year, Year 1, was the first year of operations for AJ Inc. During
You are an accountant at AJ Inc. preparing the Statement of Rel year, Year 1, was the first year of operations for AJ Inc. During Year 1, AJ Inc. had net income of $46,000 and paid dividends of $5,000. Below is select information for Year 2 after the adjusting process: Service Revenue: $84,000 Unearned Revenue: $10,000 Interest Revenue: $1,000 Accounts Receivable: $13,000 Supplies: $900 Accounts Payable: $7,000 Supplies Expense: $2,000 Depreciation Expense: $3,000 Salaries Expense: $32,000 Rent Expense: $12,000 Interest Expense: $2,000 Dividends: $6,000 Common Stock: $20,000 Required: Complete the Statement of Retained Earnings for Year 2. Enter dividends as negative (use a minus sign in front or parentheses). Commas can be used or omitted. AJ Inc. Statement of Retained Earnings For the Year Ended December 31, Year 2 Retained Earnings, January 1, Year 2 Interest Expense: $2,000 Dividends: $6,000 Common Stock: $20,000 Required: Complete the Statement of Retained Earnings for Year 2. Enter dividends as negative (use a minus sign in front or parentheses). Commas can be used or omitted. AJ Inc. Statement of Retained Earnings For the Year Ended December 31, Year 2 $ Retained Earnings, January 1, Year 2 $ Add: Net Income $ Less: Dividends $ Retained Earnings, December 31, Year 2
Step 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