Preparing a statement of retained earnings Selected accounts of Guitars by Peter, Inc., for the year ended December 31, 2012, follow:

Retained earnings

Clo

31,000

Jan 1 Clo

152,000 120,000

 

 

 

Bal

241,000

 

 

Dividends

Mar 31

10,000

 

Jun 30

7,000

 

Sep 30

8,000

 

Dec 31

6,000

 

Bal

31,000

Clo

31,000

 

Income summary

Clo 100,000

Clo 220,000

Clo 120,000

Bal 120,000

Requirement

1. Prepare the company’s statement of retained earnings for the year.