Hayden Company Had Net Income During 20X5 of $40,000

Essay

Hayden Company had net income during 20X5 of $40,000. During the year, dividends of $27,000 were declared, of which $22,000 had been paid as of year end. At the beginning of 20X5, the Paid- in Capital account had a balance of $31,000 and the Retained Earnings account had a balance of $49,000.
Required:
Prepare a statement of retained earnings for Hayden Company for the year ended December 31, 20X5.