The income statement for Harris Company was as follows: The balance sheet dated December 31, 2009, showed

Question:

The income statement for Harris Company was as follows:

The balance sheet dated December 31, 2009, showed a Retained Earnings balance of $823,000 and a Valuation Allowance for Trading Investments debit balance of $68,000.The company paid $43,000 in dividends during 2010.(a) Determine the December 31, 2010, Retained Earnings balance.(b) Determine the December 31, 2010, Valuation Allowance for Trading Investmentsbalance.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...