On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,050 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Office equipment Land Accounts payable Common stock $ 7,950 Cash dividends 17,450 Consulting revenue 4,200 Rent expense 19,060 Salaries expense 46,010 Telephone expense 9,430 Miscellaneous expenses 85,050 $ 3,070 17,450 4,530 8,090 880 690 Exercise 1-19 (Algo) Preparing a statement of retained earnings LO P2 Using the above information prepare a December statement of retained earnings for Ernst Consulting. Hint: Retained Earnings on December 1 was $0. ERNST CONSULTING Statement of Retained Earning $ 0 Retained earnings, December 1 Add: Net income 3,260 3,260 3,070 Less: Dividends Retained earnings, December 31 $ 190