As of December 31, 2010, Thomas Company had total assets of $156,000, total liabilities of $85,600, and common stock of $52,400. During 2011 Thomas earned $36,000 of cash revenue, paid $20,000 for cash expenses, and paid a $2,000 cash dividend to the stockholders.
Required:
(a) Determine the amount of retained earnings as of December 31, 2010, after closing. Retained earnings $ 18,000
(b) Determine the amount of net income earned in 2011. Net income $ _______
(c) Determine the amount of retained earnings as of December 31, 2011, after closing. Retained earnings $