b) Prepare the statement of retained earnings for the year ended December 31, 2018. LADIEZ Corporation Calculation of Retained Earnings For the Year Ended December 31, 2018 Opening Balance Add: Net Income Less: Cash Dividends - Preferred Balance - December 31, 2018 c) Prepare the shareholders' equity section of the balance sheet as at December 31, 2018. LADIEZ Corporation Balance Sheet (Partial) December 31, 2018 Stockholders' Equity Paid-In Capital Preferred Stock, 5% cumulative, $100 par value, 76,000 authorized, 4,400 issued and outstanding Common Stock, $5 par value, unlimited authorized, 233,510 issued and outstanding Additional Paid-In Capital Total Paid-In Capital Retained Earnings Total Stockholders' Equity Issued common stock for services Jan 12 Cash Preferred Stock Issue of preferred stock for cash Jan 14 Equipment > Common Stock Paid-In Capital in Excess of Par, Common Stock - Issued common stock for equipment Nov 15 Retained Earnings Dividends Payable Dividend declared on preferred stock Dec 20 Dividends Payable Cash Recording payment of dividend Dec 31 Income Tax Expense Deferred Income Tax Liability Income Tax Payable To record tax expense and liability b) Prenare the statement of retained earnings for the year ended December 31 2018 In 2018, Joanna and some of her friends invested money to start a company named LADIEZ Corporation. The following transactions occurred during 2018. Jan 1 The corporate charter authorized 76,000 shares of 5%, $100 par value cumulative preferred stock and unlimited shares of $5 par value common stock. Jan 6 Issued 224,000 common shares at $8 per share to Elizabeth and other investors. Jan 7 Issued another 510 common shares to Elizabeth in exchange for her services in organizing the corporation. The stockholders agreed that the services were worth $9,180. Jan 12 Issued 4,400 preferred shares for $440,000. Issued 9,000 common shares in exchange for equipment. The fair market value of the equipment could not be readily determined, but the market price of the common stock on this date was $17 per Jan 14 share. Nov 15 The first annual dividend on preferred stock was declared. Dec 20 Paid the dividends declared on preferred stock. Dec 31 Estimated income tax expense of $44,200. However, the actual amount of income tax due for this period based on tax laws is determined to be $40,400. LADIEZ Corporation generated a $101,000 net income during the year. The company uses the retained earnings method to record dividends. a) Prepare the journal entries to record the above transactions in 2018. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Debit Credit Jan 6 Cash Common Stock Paid-In Capital in Excess of Par, Common Stock Issued common stock for cash Jan 7 Organization Expenses Common Stock Paid-In Capital in Excess of Par, Common Stock- Issued common stock for services