Question

DecoratingDecorating

Arrangements has just completed operations for the year ended December​ 31,

Decorating Arrangements has just completed operations for the year ended December 31, 2016. This is the third year of operations for the company. The following data have been assembled for the business: : (Click the icon to view the assembled data of Decorating Arrangements.) 3 (Click the icon to view the income statement) Prepare the statement of retained earnings of Decorating Arrangements for the year ended December 31, 2016. 0 Reference Enter any increases in retained earnings prior to the subtotal and any decreas © Data Table Decorating Arrangements Statement of Retained Earnings Year Ended December 31, 2016 Retained Earnings, January 1, 2016 Net income for the year Decorating Arrangements Income Statement Year Ended December 31, 2016 S $ 4,800 26500 Insurance Expense Service Revenue Utilities Expense Rent Expense Common Stock Cash Retained Earnings, Jan. 1, 2016 Salaries Expense Accounts Payable Office Supplies Dividends Accounts Receivable Equipment $ 2,000 80,000 500 11,000 8,500 7,000 4,800 37,000 4,300 1,500 4,500 7,500 26,600 80,000 7000 (4,500) Revenues: Service Revenue Expenses: Salaries Expense Rent Expense Insurance Expense Utilities Expense Dividends $ 2500 Retained Earnings, December 31, 2016 37,000 11,000 2,000 500 Print Done Total Expenses 50,500 29,500 Net Income Choose from any list or enter any number in the input fields and then click Check Answer. Print Done

Answer 1

Solution:

Retained Earnings Statement
For the Year Ended December 31, 2016
Retained earnings, January 1, 2016	$4,800
Add: Net income	$29,500
	$34,300
Less: Dividends	-$4,500
Retained earnings, December 31, 2016	$29,800