To determine which transactions increase the statement of retained earnings, it is essential to understand how retained earnings are affected. Retained earnings increase due to:
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Net Income: If a company generates profits (net income), this directly increases retained earnings because net income is added to retained earnings after deducting dividends.
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Additional Capital Contributions: Sometimes, if owners invest additional capital into the company rather than taking out profits, this might also positively affect overall equity, but typically, this is more related to overall equity rather than direct retained earnings.
On the other hand, retained earnings decrease with the following transactions:
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Dividends Declared and Paid: Paying dividends takes money out of retained earnings.
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Net Loss: If a company incurs a loss, this will decrease retained earnings.
So, without a specific list of transactions, you can generally conclude that transactions that lead to net income or that keep dividends from being paid (thus retaining those earnings) will increase the statement of retained earnings. If you provide a list of specific transactions, I can help identify which of them would increase the statement of retained earnings.