Required information [The following information applies to the questions displayed below.) On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $85,460 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 $ 6,650 Accounts receivable 18,650 Office supplies 4,640 Office equipment 19,560 Cash dividends Consulting revenue Rent expense Salaries expense Land 46,000 Telephone expense Accounts payable 9,890 Miscellaneous expenses Common stock 85,460 $ 3,490 18,650 4,920 8,500 890 700 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 Retained earnings, December 1 $ 0 Add: Net income 3,640 Add: Net loss 0 3,640 Less: Dividends 3,490 Retained earnings, December 31 $ 150