Statement of Retained earnings

31, 2016, is presented below. AYAYAI CORP Balance Sheet December 31, 2016 Cash $26,000 Accounts payable $27,000 Accounts recelvable Allowance for doubtful accounts 46,000 Comimon stock ($10 par) 75,000 (1,900) Retained eanings 138,650 4,800 Land Buildings Accumulated depreciation-buildings (22,750) 44,500 144,000 $240,650 During 2017, the folliowing transactions occurred 1. on January 1, 2017, Ayayai issued 1,300 shares of $49 pe, 8% preferred stock for S66.300. 2. January 1, 2017, Ayayai also issued 840 shares of the S10 par value common stock for S2050. 3. Ayayai performed services for $322,000 on account. 4. On April 1, 2017, Ayayai collected fees of $37,000 in advance for services to be performed from Aprl , 2017, to March 31, 2018. Ayayai collected $285,000 from 5. customers on account. 6. Ayayal bought $36,000 of supplies on account 7. Ayayal paid $30,000 on accounts payable. Ayayal reacquired 470 shares of its common stock on June 1, 2017, for $27 Paid other operating expenses of $180,000. 8. per share 9. 10. On December 31, 2017, Ayayai declared the annual preferred and a $1.00 per share dividend on the outstanding common stock, all payable on y 15, 2018. 11. An account receivable of $1,900 which originated in 2016 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $5,900 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $3,400 at year end. 4. Depreclation is recorded on the building on a straight-line basis based on a 30-year life and a salvage 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply value of $7,500. by 30% to compute the amount.) Prepare a retained earnings statement for the year ending December 31, 2017. (List items that increas retained earnings first.) AYAYAI CORP Statement of Retained Earnings