Chapter 3 Accrual Basis of Accounting Statement of Stockholders' Equity On January 1, the credit balance of the Retained Earnings account was $51,000. The company's Common Stock account had an opening balance of $65,000, and $7,000 in new capital contributions were made during the year. On December 31, at year-end, the Dividends account had a debit balance of $10,500 before closing. The income statement shows net income of $30,500. Prepare a statement of stockholders' equity for Strife& Company, architectural design firm. L05 E3-4A. Closing Entries The adjusted trial balance prepared as of December 31, for Phyllis Howell& Com- pany, Consultant, contains the following revenue and expense accounts: L06 E3-5A. Debit Credit $80,500 .5,600 1.300 72.000 Prepare journal entries to close the accounts directly to Retained Earnings. After these entries are posted, what is the balance in the Retained Earnings account