Prepare a statement of retained earnings for the year. SKY BLUE CORPORATION Statement of Retained Earnings Balance, January 1 Balance, December 31 %24
Prepare a statement of retained earnings for the year. SKY BLUE CORPORATION Statement of Retained Earnings Balance, January 1 Balance, December 31 %24
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 17PB: Using the following Company X information, prepare a Retained Earnings Statement: Retained earnings...
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M4-14 through M4-17 (Algo) Reporting an Income Statement, Reporting a Statement of Retained Earnings , Reporting a Balance Sheet and Recording Closing Journal Entries [LO 4-4, LO 4-5]
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The Sky Blue Corporation has the following adjusted
Debit | Credit | |
---|---|---|
Cash | $ 1,260 | |
Accounts Receivable | 2,300 | |
Prepaid Insurance | 2,600 | |
Notes Receivable (long-term) | 3,300 | |
Equipment | 13,500 | |
$ 3,200 | ||
Accounts Payable | 5,720 | |
Salaries and Wages Payable | 1,150 | |
Income Taxes Payable | 3,200 | |
Deferred Revenue | 660 | |
Common Stock | 2,700 | |
Retained Earnings | 1,120 | |
Dividends | 330 | |
Sales Revenue | 44,730 | |
Rent Revenue | 330 | |
Salaries and Wages Expense | 22,200 | |
Depreciation Expense | 1,600 | |
Utilities Expense | 4,520 | |
Insurance Expense | 1,700 | |
Rent Expense | 6,300 | |
Income Tax Expense | 3,200 | |
Total | $ 62,810 | $ 62,810 |
Expert Solution
Step 1
Retained earnings , closing balance = Opening retained earnings balance + net income - dividends
( All temporary accounts are closed to retained earnings )
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