certified security inc began the year with 35 000 of common stock and 32 400 of reta 4138616

February 12, 2021/in Business Homework Help Online /by Joseph

Certified Security, Inc., began the year with $35,000 of common stock and $32,400 of retained earnings. On May 5, investors bought $8,000 of additional stock in the business. On August 22, the business purchased land valued at $23,000. The income statement for the year ended December 31, 2016, reported net income of $52,300. During this fiscal year, the business paid $4,000 each month for dividends.

Requirements

1. Prepare Certified Security’s statement of retained earnings for the year ended December 31, 2016.

2. Did the retained earnings of the business increase or decrease during the year? What caused this change?

Certified Security Inc began the year with 35 000 of common

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