How do you prepare a statement of retained earnings?

How to prepare a statement of retained earnings in 5 steps

  1. Add the heading. At the top, add a three-line heading.
  2. Record the previous year’s balance. This is the first line item.
  3. Add net income. Find net income on your income statement.
  4. Subtract any dividends paid out to shareholders.
  5. Calculate the total retained earnings.

Dec 18, 2019

All categories