The adjusted trial balance of Bramble Corporation at December 31, 2022 includes the following accounts: Retained Earnings $10,584; Dividends $4,200; Service Revenue $25,200; Salaries and Wages Expense $12,600; Insurance Expense $1,680; Rent Expense $3,780; Supplies Expense $420; and Depreciation Expense $840. Prepare a retained earnings statement for the year. (List items that increase retained earnings first.)

Answer and Explanation:

The preparation of the retained earnings statement for the year ended December 31, 20 is presented below:

                                      Bramble Corporation

                                Retained Earning statement

                             For the year ended December 31, 2022

Beginning balance of retained earning $10,584

Add: Net income $5,880

Less: Cash Dividend paid -$4,200

Ending balance of retained earning $12,264

The net income is computed below:

= Service revenue - salaries and wages expense - insurance expense - rent expense - supplies expense - depreciation expense

= $25,200 - $12,600 - $1,680 - $3,780 - $420 - $840

= $5,880

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