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If $19,000 of dividends had been declared and paid during the year, what was the January 1, 2016, balance of retained earnings? Popes Garage had

If $19,000 of dividends had been declared and paid during the year, what was the January 1, 2016, balance of retained earnings?

Popes Garage had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year then ended.

Accounts receivable

$

32,200

Depreciation expense

10,500

Land

25,000

Cost of goods sold

88,500

Retained earnings

60,000

Cash

10,800

Equipment

69,000

Supplies

5,900

Accounts payable

20,000

Service revenue

26,600

Interest expense

3,800

Common stock

9,000

Income tax expense

13,486

Accumulated depreciation

42,000

Long-term debt

39,000

Supplies expense

13,500

Merchandise inventory

27,100

Sales revenue

151,000

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