Question

4-9: Bramble Corporation has retained earnings of $722,500 at January 1, 2017. Net income during 2017 was $1,513,900, and cash dividends declared and paid during 2017 totaled $81,200. Prepare a retained earnings statement for the year ended December 31, 2017. (List items that increase retained earnings first.)

Practice:
Pro Engineering, Inc. had the following transactions during the first month of business as a proprietorship. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Mar.	1		Invested $30,000 cash.
	3		Purchased $8,700 of equipment for the business with cash.
	6		Purchased supplies on account for $820 (Debit asset account).
	15		Paid March rent of $2,500.
	28		Performed engineering services for clients, for which $1,400 was collected in cash and $6,200 was billed to the clients.

Thank you for your help.

Answer 1

Ans.	Bramble Corpration
	Retained Earnings Year ended December 31, 2017
	Particulars					Amt.($)
	Retained Earning on 1 January, 2017					722,500
	Add: Net income during the year					1,513,900
						2,236,400
	Less: Dividends paid					81,200
	Retained Earning on December 31, 2017					2,155,200

Ans.	Journal Entries
	Account Titles			Dr. ($)	Cr. ($)
March. 1	Investment			30,000
	To Cash				30,000
	(Being investment made in cash)
2	Equipment			8,700
	To Cash				8,700
	(Being Equipment purchase in cash for business)
3	Supplies			820
	To Accounts Payable				820
	(Being supplies purchase on credit)
4	Rent			2,500
	To Cash				2,500
	(Being paid march rent in cash)
5	Cash			1,400
	Accounts receivable			6,200
	To Income Summary				7,600
	(Being provide services to clients on cash for $1,400 and on account for $6,200.)