Exercise 116 Presented below is information related to Willi

Exercise 1-16 Presented below is information related to Williams and Douglas, Attorneys at Law Ltd Retained earnings, January 1, 2017 Legal service revenue-2017 Total expenses-201/ Assets, January 1, 2017 Liabilities, January 1, 2017 Assets, December 31, 2017 Liabilities, December 31, 2017 Dividends-2017 E21,390 331,914 205,499 91,702 70,312 176,966 100,085 70,924 Prepare the 2017 retained earnings statement for William and Douglas, Attorneys at Law Ltd. (List items that increase retained earnings first.) WILLIAMS AND DOUGLAS, ATTORNEYS AT LAW, LTD. Retained Earnings Statement

Solution

WILLIAMS AND DOUGLAS, ATTORNEYS AT LAW, LTD.

Retained Earnings Statement

For the Year Ended December 31, 2017

Retained earnings, January 1	21,390
Add: Net income(331,914 - 205,499)	126,415
	147,805
Less: Dividends	70,924
Retained earnings, December 31	76,881