fill in the blank question illustrate your understanding of how to use the adjusted trial balance to prepare…

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 of 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.

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 of 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.

Answer

Brief Explanations:

To prepare a statement of retained earnings, the balance of the retained - earnings account is used as it shows the cumulative earnings of a company. Dividends are distributions to shareholders and are subtracted from retained earnings when calculating the ending retained - earnings balance. So, the debit balance in the dividends account is also relevant. Cash and supplies are not directly related to the calculation of retained earnings for this purpose.

Answer:

  1. Retained earnings
  2. Dividends