Financial statement information about four different companies is shown below.

Instructions
(a) Determine the missing amounts.
(b) Prepare the retained earnings statement for John Ltd. Assume beginning retained earnings was £0.
(c) Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the retained earnings statement to the income statement and statement of financial position.

Paul Ringo John Ltd George Ltd Ltd. 140,000 100,000 Ltd. January 1, 2017 78,000 50,000 Assets Liabilities Equity E 90,000 50,000 117,000 75,000 54,000 180,000 100,000 10,000 December 31, 2017 Assets Liabilities Equity 79,000 55,000 40,000 80,000 145,000 9 Equity changes in year Additional investment Dividends Total revenues Total expenses 8,000 7,000 350,000 335,000 15,000 10,000 500,000 12,000 390,000 400,000 360,000