Service Revenue 99,600 Salaries Expense 49,400 Rent Expense 17,250 2,200 Insurance Expense Depreciation Expense Income Taxes Expense 4,950 5,400 Totals $144,980 $144,980 Required: Prepare a retained earnings statement for Sparrow for 2019. Sparrow Company Retained Earnings Statement For the Year Ended December 31, 2019 Beginning retained earnings Add: Net income Less: Dividends Ending retained earnings Cornerstone Exercise 3-25 (Algorithmic) Preparing a Retained Earnings Statement Sparrow Company had the following adjusted trial balance at December 31, 2019. Sparrow Company Adjusted Trial Balance December 31, 2019 Debit Credit Cash $3,150 5,650 4,480 42,000 $24,000 Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation, Equipment Accounts Payable Salaries Payable Unearned Service Revenue Common Stock Retained Earnings Dividends Service Revenue 2,800 4,450 3,875 8,000 2,255 10,500 99,600 2,255 Retained Earnings Dividends 500 Service Revenue 99,600 Salaries Expense 49,400 Rent Expense 17,250 Insurance Expense Depreciation Expense 4,950 Income Taxes Expense 5,400 Totals 144,980 Required: Prepare a retained earnings statement for Sparrow for 2019. Sparrow Company Retained Earnings Statement For the Year Ended December 11, 2019 Beginning retained earnings Add: Net income Less: Dividends Ending retained earnings