Answer:
The ending retained earning balance is $735,000
Explanation:
For computing the ending balance of retained earnings, first we have to compute the net income or net loss which is shown below:
Net income = Service revenue - Salaries and wages expense - Rent expense - Depreciation expense
= $1,151,000 - $366,000 - $91,500 0 $457,500
= $236,000
Now The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
= $584,000 + $236,000 - $85,000
= $735,000
