Preparing a Statement of Retained Earnings

Clint's Stonework Corporation was organized on January 1, 2011. For its first two years of operations, it reported the following:

Net income for 2011............................. $ 31,000

Net income for 2012............................. 42,000

Dividends for 2011............................... 14,200

Dividends for 2012............................... 18,700

Total assets at the end of 2011................. 130,000

Total assets at the end of 2012................. 250,000

Required:

On the basis of the data given, prepare a statement of retained earnings for 2012. Show computations.