Exercise 16 Presented here is information for Blue Spruce Co

Exercise 1-6 Presented here is information for Blue Spruce Corp. for 2017 Retained earnings, January 1 Service revenue Total expenses Dividends $184,600 568,000 248,500 92,300 Calculate the net income Net income VIDEO APPLIED SKILLS Prepare the 2017 retained earnings statement for Blue Spruce Corp.. (List items that increase retained earnings first.) Blue Spruce Corp. Q Search or enter website name 3 4. 5 6 8

Solution

Blue Spruce Corp Net income 319500 (568,000-248,500) Retained earnings statement Retained earnings,January 1 184,600 Add:Net income for the year 319,500 504,100 less:dividends 92,300 Retained earnings ,dec 31 411,800 Sheffied Corp. Sheffield Corp net income for 2017 40920 (174,240+33,000-166,320) Retained earnings statement Retained earnings,January 1 6,600 Add:Net income for the year 40,920 47,520 less:dividends 11,880 Retained earnings ,dec 31 35,640 balance sheet as on Decmeber 31,2017 Assets Cash 11,220 Supplies 7,260 Equipment 150,480 total assets 168,960 liabilities and Stockholder\'s Equity liabilities. Accounts payable 14,520 Notes payable 66,000 Total liabilities 80,520 Stockholder\'s Equity Common stock 52,800 Retained Earnings 35,640 Total Stockholder\'s Equity 88,440 Total liabilities & Stockholder\'s Equity 168,960