P1-5A. Statement of Stockholders Equity and Balance Sheet The following is balance sheet information

for Flush Janitorial Service, Inc., at the end of 2019 and 2018:

December 31, 2019 December 31, 2018

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17,000 $ 18,000

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 44,000

Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,000 62,000

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,000 92,000

Building, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 520,000

Equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 77,000

Mortgage payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,000 205,000

Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,000 22,000

Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420,000 420,000

Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 0

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? ?

Required

a. Prepare a balance sheet as of December 31 of each year.

b. Prepare a statement of stockholders equity for 2019. (Hint: The increase in retained earnings is

equal to the net income less the dividend.