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10 February, 05:18

Stone Culture Corporation was organized on January 1, 2017. For its first two years of operations, it reported the following:

Net Income for 2017 $ 54,000

Net Income for 2018 59,000

Dividends for 2017 22,000

Dividends for 2018 34,000

Total assets at the end of 2017 139,000

Total assets at the end of 2018 256,000

On the basis of the data given, prepare a statement of retained earnings for both 2017 (its first year of operations) and 2018.

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  1. 10 February, 07:36
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    Statement of retained earnings

    For the year ended 2017

    Retained earnings, January 1, 2017 $0

    Add: Net Income $54,000

    Less: Dividends $22,000

    Retained earnings, December 31, 2017 $32,000

    Statement of retained earnings

    For the year ended 2018

    Retained earnings, January 1, 2018 $0

    Add: Net Income $59,000

    Less: Dividends $34,000

    Retained earnings, December 31, 2018 $25,000
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