Question

Elegant Arrangements has just completed operations for the year ended December 31, 2018. This is the third year of operations for the company. The following data have been assembled for the business: E (Click the icon to view the assembled data of Elegant Arrangements.) E (Click the icon to view the income statement.) Prepare the statement of retained earnings of Elegant Arrangements for the year ended December 31, 2018. Enter any increases in retained eamings prior to the subtotal and any decreases to retained eamings below the subtotal. Data Table Retained Earnings, January 1, 2018 Insurance Expense 6,500 Salaries Expense 41,000 Accounts Payable Service Revenue 74,000 18,600 Utilities Expense B00 Office Supplies 1,800 Rent Expense 7,000 Dividends 5.000 Retained Earnings, December 31, 2018 Common Stock 5,000 Accounts Receivable 6,000 Cash Equipment 4,400 30,400 Retained Eamings, January 1, 2018 5,300 Print Done

Answer 1

Elegant Arrangements

Statement of retained earnings

December 31,2018

Retained earnings, January 1,2018	5300
Add: Net income	18700
	24000
Less: Dividends	-5000
Retained earnings, December 31,2018	19000