Statement of Stockholders' Equity and Balance Sheet The following is balance sheet information for Flush Janitorial Service, Inc., at the end of Year 1 and Year 2: December 31, December 31, Year 2 Year 1 Accounts Payable $17,000 $18,000 Cash 50,000 44,000 Accounts Receivable 78,000 62,000 Land 92,000 92,000 Building, net 500,000 520,000 Equipment, net 75,000 77,000 Mortgage Payable 175,000 205,000 Supplies 27,000 22,000 Common Stock 420,000 420,000 Dividends 20,000 0 Retained Earnings ? ? Required a. Prepare a balance sheet as of December 31 of each year. FLUSH JANITORIAL SERVICE, INC. Accounts Payable Cash Supplies Land Building, net Equipment, net Total Assets Balance Sheets Year 2 December 31, December 31, Year 1 ASSETS 17,000 x $ 18,000 x x 50,000 x 44,000 x 27,000 22,000 92,000 92,000 500,000 75,000 520,000 77,000 S 839,000 x 5 835,000 x LIABILITIES Mortgage Payable 0 x $ 0 x 175,000 205,000 0 x 0 x Total Liabilities STOCKHOLDERS' EQUITY Common Stock 420,000 420,000 Retained Earnings x 244,000 x 210,000 x Total Stockholders' Equity 664,000 x 630,000 x Total Liabilities and Stockholders' Equity $ 839,000 $ 835,000 x b. Prepare a statement of stockholders' equity for Year 2. (Hint: The increase in retained earnings is equal to net income less dividends.) FLUSH JANITORIAL SERVICE, INC. Statement of Stockholders' Equity For Year Ended December 31, Year 2 CommonStock Retained Earnings Balance, December 31, Year 1 $ 420,000 $ 210,000 * $ Total 630,000 x Add: Net income for Year 2 Less: Dividends for Year 2 (Enter as negative) Balance, December 31, Year 2 0 0 54,000 x (20,000) 54,000 x (20,000) $ 420,000 $ 244,000 x $ 664,000 x Check