Essay

1. At the beginning of the current fiscal year, Surrey Corp.'s balance sheet showed assets of $675,000 and Liabilities of $525,000. During the year, liabilities decreased by $35,000. Net Income for the year was $175,000, and net assets at the end of the year were $193,000. There were no changes in paid-in capital during the year. Calculate the dividends, if any, declared during the year. Calculate the total assets at the end of the year.

2. From the data given below, calculate the Retained Earnings balance of December 31, 2010. Retained earnings December 31, 2009 230,000.00

Increase in total liabilities during 2010 66,000.00

Grain on the scale of buildings during 2010 28,000.00

Dividens declared and paid in 2010 18,000.00

Procceeds from the sale common stock in 2010 64,000.00

Net Income for the year ended Decemeber 31, 2010 82,000.00

Prepare the retained earning portion of a statement of change in owners' equity for the year ended December 31, 2010.