As of December 31, Year 2, Moss Company had total cash of $161,000, notes payable of $86,100, and common stock of $52,900. During Year 3, Moss earned $41,000 of cash revenue, paid $22,500 for cash expenses, and paid a $3,500 cash dividend to the stockholders.

Required

a. Determine the amount of retained earnings as of December 31, Year 2.

b. & c. In the accounting equation table, record the beginning account balances, revenue, expense, and dividend events under the appropriate headings of the accounting equation.

d. Complete the table below to prove the equality of the accounting equation as of December 31, Year 3.