Question

fill in the blank question
illustrate your understanding of how to use the adjusted trial balance to prepare a statement of retained earnings by completing the following sentence. in order to prepare the statement retained earnings, the balance of the (retained earnings/cash) account as well as any debit balance in the (dividends/supplies) account is transferred from the adjusted trial balance and is used along with the reported net income (loss) from the income statement.
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Explanation:

The statement of retained earnings starts with the beginning balance of retained earnings. Dividends (debit balances) reduce retained earnings, while net income (or loss) from the income statement adjusts the retained earnings balance. Cash and supplies are balance sheet accounts not used directly in this statement's core calculation.

Answer:

1. Retained earnings
2. Dividends