Splish Corporation has retained earnings of $707,000 at January 1, 2020. Net income during 2020 was $1,428,500, and cash dividends declared and paid during 2020 totaled $85,000. Prepare a retained earnings statement for the year ended December 31, 2020. (List items that increase retained earnings first.)

Explanation:

Statement of retained earning represent the changes in retained earning balance during the year and accumulated beginning balance of the period and Ending balance as well. It deals with all the adjustment in retained earning like net income transfer  fro the year, dividend paid during the year etc.

                    Splish Corporation

           Retained Earning Statement

  for the year ended December 31, 2020

                                                                          $

Retained Earning at January 1, 2020           707,000

Less: Cash Dividend paid during 2020       85,000

Add: Net Income for the year 2020             1,428,500

Retained Earning ath December 31 2020   2,050,500