Type the six subtotal lines that carry Tamarack’s income statement into its statement of retained earnings

Answer

Gross profit 610,500 Income from operations 201,600 Income before income tax 194,100 Net income 155,280 Retained earnings, beginning of year 258,550 Retained earnings, end of year 389,830

Four subtotals on the income statement, then the SRE’s opening and closing figures. The closing 389,830 is what the balance sheet shows; the opening 258,550 is what the trial balance shows.

Hermanson Vol 1 ch 6 (multi-step), ch 13; Lyryx Intermediate FA Vol 1 §3.4–3.5; Dauderis & Annand §5.5; ASPE s.1520 (concept map O2–O3)