1. The following is the adjusted trial balance for Stockton Company.

   Stockton Company Adjusted Trial Balance December 31
   Cash	5,106
   Accounts Receivable	2,539
   Prepaid Expenses	767
   Equipment	15,712
   Accumulated Depreciation		4,396
   Accounts Payable		1,787
   Notes Payable		5,518
   Common Stock		1,000
   Retained Earnings		7,935
   Dividends	865
   Fees Earned		8,069
   Wages Expense	2,198
   Rent Expense	754
   Utilities Expense	428
   Depreciation Expense	223
   Miscellaneous Expense	113
   Totals	28,705	28,705

   Determine the retained earnings ending balance.

   a.$11,423

   b.$28,705

   c.$4,353

   d.$8,935