5. Kates Cards has a net income of $1,500 for the current month of August 2019. Kate had decided that the business will have a fiscal year-end of August 31, so this is the completion of the companys first year. Kate will be preparing her annual financial statements; however, she would also like to see a monthly statement of retained earnings for August 2019. In addition, she would like to see how the stockholders equity section of the balance sheet will look after the addition of the preferred stock. The stockholders equity section from July 2019 is shown below:

Stockholders Equity

Common stock (5,000 shares authorized, 500 shares issued and outstanding) $ 500

Paid-in capital in excess of par valuecommon stock . . . $ 9,500

Retained earnings . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . $ 15,000

Total stockholders equity . . . . . . . . . . . . . . . . . . . . . . . . . . .. . $25,000

Prepare a statement of retained earnings for the month of August 2019 and the stockholders equity section of the balance sheet as of August 31, 2019.