As of December 31, 2016, Flowers Company had total assets of $130,000, total liabilities of $50,000, and common stock of $70,000. The company’s 2016 income statement contained revenue of $30,000 and expenses of $18,000. The 2016 statement of changes in stockholders’ equity stated that $3,000 of dividends were paid to investors.
Determine the before-closing balance in the Retained Earnings account on December 31, 2016.
Retained Earnings before closing:
