Cash Accounts receivable Supplies Equipment Accounts payable

Cash Accounts receivable Supplies Equipment Accounts payable Common stock Retained earnings, Dec. 31, 2016 Retained earnings, Dec. 31, 2017 Dividends Consulting revenue Rental revenue Salaries expense Rent expense Selling and administrative expenses $10,600 9,000 6, 000 5, 000 13, 000 4, 000 6, 000 13,000 33,000 22,000 29, 000 12, 000 8,000 Required Prepare a year-end statement of retained earnings for Armani Company ARMANI COMPANY Statement of Retained Earnings For Year Ended December 31, 2017 Retained earnings, December 31, 2016 4,000 4,000 Retained earnings, December 31,2017 6,000

Solution

ARMANI COMPANY Statement of Retained Earnings For Year Ended December 31, 2017 Retained Earnings, December 31 2016 $4,000 Add: Net Income* $15,000 $19,000 Less: Dividends $13,000 Retained Earnings, December 31 2016 $6,000 *$33,000 + $22,000 - $20,000 - $12,000 - $8,000 = $15,000