(Answered) : Please provide an explanation for how to solve Stockholder’s Equity and Retained Earnings columns below with calculations. M4

Please provide an explanation for how to solve Stockholder’s Equity and Retained Earnings columns below with calculations.

M4-9 Reporting a Statement of Stockholders Equity LO4-2

Romney’s Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 590 shares ($0.10 par value per share) issued at the end of the year for $2,800 are included below:

Debit Credit
Cash $ 1,530
Accounts receivable 2,300
Interest receivable 290
Prepaid insurance 1,620
Notes receivable (long-term) 2,830
Equipment 17,000
Accumulated depreciation $ 2,820
Accounts payable 2,350
Accrued expenses payable 3,770
Income taxes payable 2,660
Unearned rent revenue 460
Common Stock (800 shares) 80
Additional paid-in capital 3,580
Retained earnings 6,170
Sales revenue 37,050
Interest revenue 170
Rent revenue 670
Wages expense 18,600
Depreciation expense 1,770
Utilities expense 410
Insurance expense 710
Rent expense 10,000
Income tax expense 2,720
Total $ 59,780 $ 59,780
Prepare a statement of stockholders’ equity in good form