The asset, liabilities, and equities of

Drought

Design Studio have the following balances at

December

31,

2018.

The retained earnings was

$40,000

at the beginning of the year. At year end, common stock was

$12,000

and dividends were

$52,000.

Data Table

Notes Payable	$12,500		Office Furniture	$65,100
Rent Expense	19,000		Utilities Expense	6,900
Cash	3,400		Accounts Payable	2,800
Office Supplies	4,600		Service Revenue	165,300
Salaries Expense	67,000		Accounts Receivable	8,900
Property Tax Expense	2,000		Miscellaneous Expense	3,700

Reference

		Drought Design Studio
		Income Statement
		Year Ended December 31, 2018
Revenues:
	Service Revenue		$165,300
Expenses:
	Salaries Expense	$67,000
	Rent Expense	19,000
	Utilities Expense	6,900
	Miscellaneous Expense	3,700
	Property Tax Expense	2,000
		Total Expenses		98,600
Net Income		$66,700

Prepare the statement of retained earnings for

Drought

Design Studio for the year ending

December

31,

2018.

Retained Earnings, January 1, 2018
Retained Earnings, December 31, 2018