1. Spooky Town Co. had $1,500,000 in retained earnings on 1/1/19. During fiscal year 2018, net income of $500,000 was earned, and dividends of $250,000 were declared and paid. They also had an increase of cash totaling $75,000 and issued common stock totaling $50,000. Calculate the ending retained earnings balance as of 12/31/19. Show your work.

2. Werewolves, Inc. had ending retained earnings of $2,000,000 on 12/31/19. During fiscal year 2019, they unfortunately incurred a net loss of ($250,000), but still declared and paid stock dividends of $25,000. They also purchased new equipment for $30,000, paid $40,000 on their long-term debt, and bought back treasury stock for $60,000. Calculate the beginning retained earnings balance on 1/1/19. Show your work.