The following information is for Larry’s Book Store:

1. Retained earnings on January 1, 2010 were $127,000.

2. In January, revenues were $15,000 and expenses were $10,000.

3. In February, revenues were $17,500 and expenses were $20,000.

4. In March, revenues were $19,225 and expenses were $13,000.

5. The company declared and paid dividends in March of $1,000.

Requirement

Calculate the ending balance in retained earnings, and then prepare the retained earnings portion of the statement of changes in shareholders’ equity for the quarter (three months) ended March 31, 2010.