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Donatello Company Leonardo Company Michelangelo Company Raphael Company $110,000 $75,000 48,000 (a) (d) (g) $ 75,000 45,000 $150,000 G) 100,000 60,000 200,000 January 1, 2019
Donatello Company Leonardo Company Michelangelo Company Raphael Company $110,000 $75,000 48,000 (a) (d) (g) $ 75,000 45,000 $150,000 G) 100,000 60,000 200,000 January 1, 2019 Assets Liabilities Stockholders' equity December 31, 2019 Assets Liabilities Stockholders' equity Stockholders' equity changes in year Additional investment Dividends Total revenues Total expenses (b) 55,000 40,000 137,000 75,000 (h) (k) 80,000 140,000 (e) 130,000 15,000 () 10,000 14,000 (c) 6,000 350,000 335,000 15,000 10,000 500,000 420,000 382,000 342,000 (1) Instructions (a) Determine the missing amounts. (Hint: For example, to solve for (a), Assets Liabilities = Stockholders' Equity = $27,000.) (b) Prepare the retained earnings statement for Leonardo Company. Assume beginning retained earnings was $20,000. Retained earnings (ending) $7,000 Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the retained earnings statement to the income statement and balance sheet
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