! Required information (The following information applies to the questions displayed below. Pratt Corporation started the Year 2 accounting period with total assets of $34,000 cash, $14,000 of liabilities, and $9,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $11,550. The bookkeeper reported that Pratt paid cash expenses of $28,000 and paid a $2,400 cash dividend to stockholders, but she could not find a record of the amount of cash revenue that Pratt received for performing services. Pratt also paid $7,000 cash to reduce the liability owed to a bank, and the business acquired $7,700 of additional cash from the issue of common stock. Assume all transactions are cash transactions. b. Prepare the Year 2 statement of changes in stockholders' equity. HINT: To calculate the amount of beginning common stock; rearrange the accounting equation and solve for the missing variable. PRATT CORP. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock $ 9,000 Plus: Common stock issued Ending common stock $ Beginning retained earnings 9,000 0 Ending retained earnings Total stockholders' equity $ 9,000