Q 35E
Question
Prepare the statement of retained earnings for Damon Design Studio for the year ending December 31, 2018.
Step-by-Step Solution
Verified Answer
Statement of retained earnings is shown as follows:
Damon Design Studio | |
Statement of Retained Earnings | |
Year Ended December 31, 2018 | |
Retained Earnings, January 1, 2018 | $39,000 |
Net income for the year | 53,400 |
| 92,400 |
Dividends | (57,000) |
Retained Earnings, December 31, 2018 | $35,400 |
1Step-by-Step-Solution Step 1: Explanation on the statement of retained earnings
Statement of retained earnings represents the net change in the retained earnings due to income and dividend.
2Step 2: Explanation on retained earnings
Retained earnings are the accumulated profits of the prior or previous years.
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