The Midwest Hotel issues a full set of financial statements annually to its stock- holders. Mike Greer, the chief accountant, has provided you with the follow- ing information:

4 Retained earnings account balances:

December 31, 20X1 $150,000 December 31, 20X2 $200,000 Sale of capital stock:

20X2 $ 10,000 20X3 $ 15,000 Dividends declared:

20X2 $ 20,000 20X3 $ 30,000 Dividends paid:

20X2 $ 15,000 20X3 $ 25,000 Operating results:

20X2 net income $ 70,000 20X3 net loss $ 10,000 Required:

Prepare the statement of retained earnings for 20X2 and 20X3.