40PGB_2
Question
Question: Preparing financial statements from the trial balance and calculating the debt ratio
Preparing financial statements from the trial balance and calculating the debt ratio
Account Title Debit Credit
Office Supplies 1,400
Cash 32,000
Accounts Receivable 9,100
Prepaid Insurance 2,600
Equipment 24,000
Accounts Payable 3,400
Unearned Revenue 1,296
Notes Payable 34,000
Common Stock 20,000
Dividends 3,000
Salaries Expense 1,600
Rent Expense 700
Utilities Expense 100
Service Revenue 15,804
Total Balance \( 74,500 \) 74,500
Requirements 2. Prepare the statement of retained earnings for the month ended July 31, 2018. The beginning balance of retained earnings was $0.
Step-by-Step Solution
VerifiedThe statement of retained earnings shows the change in retained earnings and the closing balance of retained earnings is $10,404
The statement of retained earnings is defined as the financial statement which shows changes in retained earnings of the business.
Sheila Sanchez, Registered Dietician | |
Statement of retained earnings | |
July 31, 2018 | |
| Amount ($) |
Opening retained earnings | $0 |
Add: Net Income | $13,404 |
| $13,404 |
Less: Dividends | $3,000 |
Closing Retained earnings | $10,404 |