Rolling Hill Interiors, Inc., began the year with Retained earnings of $20,000. On July 12, Rolling Hill

Question:

Rolling Hill Interiors, Inc., began the year with Retained earnings of $20,000. On July 12, Rolling Hill issued and received $14,000 cash. The income statement for the year ended December 31, 2012, reported net income of $63,000. During this fiscal year, Rolling Hill paid cash dividends of $6,000 each month.
Requirement
1. Prepare Rolling Hill Interiors, Inc.’s, statement of retained earnings for the year ended December 31, 2012.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...