b Prepare the retained earnings statement for Leonardo Compa

(b) Prepare the retained earnings statement for Leonardo Company. Assume beginning retained earnings was $20,000. (List items that increase retained earnings first.) Leonardo Company Retained Earnings Statement For the Year Ended December 31, 2019 Retained Earnings, December 31 Click if you would like to Show Work for this question: Open Show Work

Solution

(b) preparation of retained earnings Statement for Leonardo Company Leonardo company Retained Earnings Statements For the year ended december31,2019 Retained earnings, december 31,2018 $       20,000 Add: net icnome Earned ($420,000-$382,000) $       38,000 $       58,000 Less: Dividend paid $       51,000 Retained Earnings, december 2019 $         7,000 Determination of Missing Amounts Donatello Company (a) Stock holders equity of Donatello Company on january 1,2019=Assets - Liabilities =$75000-$48000 =$27000 (b) Assets of Donatello Company on december31,2019=Liabilities + Stock holders Equity =$55000+$40,000 =$95000 © Additional investmnet made by the Donatello Company during the year 2019 =Stock holders equity on december 31,2019 - Stock holders Equity on january 2019 - net income Earned + Dividend paid © Additional investmnet made by the Donatello Company during the year 2019 =$40,000-$27000-(350,000-335000)+6000 =$4000 leonardo Company (d) Liabilities of leonardo company on january 1,2019 =Asstes - Stock holders equity =$110,000-$60,000 =$50,000 (e ) Stock holders equity of leonardo company on december 31,2019 = Assets - Liabilities =$137000-$75000 =$62000 (f) Dividends paid by leonardo Company during 2019 =Stock holders Equity on january 2019 + net income Earned + Additial investments - Stock holders equity on december 31,2019 Dividends paid nu Leonardo Company =60000 +(420,000-382,000) + 15000 -62000 =$51000 Michelangelo Company (g) Assets of Michelangelo Company on january 1,2019 =Liabilities + Stock holdes equity =$75000+$45000 =$120,000 (h) Liabilities of Michelangelo Company on december 31,2019 =Assets - Stock holders equity =$200,000-$130,000 =$70,000 (i) Total revenues of michelangelo Company for 2019 =Total Expenses +Dividends paid - Additional Investments +Stock holders equity on december 31 2019- Stock holders equity on January 1,2019 Total revenues =$342,000+$14000-$10,000+130,000+130,000-$45000 =$431,000 Raphael Company (j) Liabilities of Raphael Company on january 1,2019 =Assets - Stock holders equity =$150,000-$100,000 =$50,000 (k) Assets of Raphael Company on December 31,2019 = Liabilities + Stock holders equity =$80,000+$140,000 =$220,000 (l) Total Expenses of Raphael Company for 2019 = Total revenues - Dividends paid + Additional investment +Stock holders equity on january 1,2019 - Stock holders equity on december 31,2019 Total expenses =$500000 - $10,000 +$15000 +$100,000 - $140,000 =$465000