Penny Cassidy is considering forming her own pool service and supply company, Pennys Pool Service & Supply Inc. (PPSS). She has decided to incorporate the business to limit her legal liability. She expects to invest $40,000 of her own savings and receive 1,000 shares of capital. Her plan for the first year of operations forecasts the following amounts at December 31, 2019, the end of the year: Cash in bank, $2,900; amounts due from customers for services rendered, $2,300; pool supplies inventory, $4,600; equipment, $48,000; amounts owed to Pool Corporation Inc., a pool supply wholesaler, $3,500; note payable to the bank, $5,000. Penny forecasts first year sales of $60,000, wages of $24,000, cost of supplies used $8,200, other administrative expenses $4,500, and income tax expense of $4,000. She expects to pay herself a $10,000 dividend as the sole shareholder of the company.

Required: If Pennys estimates are correct, what would the following first year financial statements look like for Pennys Pool Service & Supply.

This is what I have so far. I am just not sure if what I am using as retained earnings is correct !

2. Prepare a statement of shareholders' equity as at December 31, 2019. PENNY'S POOL SERVICE & SUPPLY INC. Statement of Shareholders' Equity For the Year Ended December 31, 2019 Contributed Capital Balance, January 1, 2019 $ 40,000 Issuance of shares Retained Earnings 40,000 Net earnings for 2019 19,300 Dividends for 2019 10,000 69,300 Balance, December 31, 2019 $ 40,000 $ 3. Prepare a statement of financial position as at December 31, 2019. PENNY'S POOL SERVICE & SUPPLY INC. Statement of Financial Position At December 31, 2019 Assets Cash $ 2,900 Equipment 48,000 4,600 Inventories Accounts receivable 2,300 Total assets $ 57,800 Liabilities and Shareholders' Equity: Liabilities $ 3,500 Accounts payable Note payable to banks 5,000 Total liabilities 8,500 Shareholders' Equity Retained earnings 69,300 Total shareholders' equity Total liabilities and shareholders' equity 69,300 77,800 $