The Space Corporation began 2015 with $390,000 in assets, $140,000 in liabilities, and $170,000 of retained earnings the year was $120,000, and dividends of $110,000 were declared and paid.
A) Prepare a statement of retained earnings for 2015.
B) What is the nature or purpose of the statement of retained earnings?
C) What was the amount of capital stock for Space Corporation at the beginning of 2015?
D) Identify what business events might occur in Space Corp.'s business operations that would cause the two stockholders' equity items to increase.
E) How do you identify whether Space was profitable during 2015 by examining the statement of retained earnings?

Question

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The Answer of The Space Corporation began 2015 with $390,000 in assets, $140,000 in liabilities, and $170,000 of retained earnings the year was $120,000, and dividends of $110,000 were declared and paid.
A) Prepare a statement of retained earnings for 2015.
B) What is the nature or purpose of the statement of retained earnings?
C) What was the amount of capital stock for Space Corporation at the beginning of 2015?
D) Identify what business events might occur in Space Corp.'s business operations that would cause the two stockholders' equity items to increase.
E) How do you identify whether Space was profitable during 2015 by examining the statement of retained earnings?

The Space Corporation Began 2015 with $390,000 in Assets, $140,000