Enter any increases in retained earnings prior to the subtotal and any decreases

Question

Enter any increases in retained earnings prior to the subtotal and any decreases to retained earnings below the subtotal. For amounts with a $0 balance, make sure to enter 0 in the appropriate cell. Dalton Hair Stylists Statement of Retained Earnings Year Ended December 31, 2018 Reference Retained Earnings, January 1, 2018 Dalton Hair Stylists Income Statement Year Ended December 31, 2018 Revenues: Retained Earnings, December 31, 2018 Service Revenue 13,800 Expenses: Rent Expense Interest Expense Depreciation Expense Equipment Supplies Expense 3,900 2,300 2,200 850 9,250 Total Expenses 4,550 Net Income (Loss) Print Done

Explanation / Answer

The Net income of $4,550 should be added to the opening balance. There is no information in the question regarding dividend paid, therefore there will be no decrease in retained earnings.

In second row (ie. below Retained Earnings, January 1, 2018) -

Increase in retained earnings - $4,550

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