APTER 1 Accounting in Action nancial statement prepare retained earnings P1.5A (LO 4, 5), AP Writing Financial statement information about four different companies is as follows. January 1, 2022 Assets Liabilities Stockholders' equity December 31, 2022 Assets Liabilities Stockholders' equity Stockholders' equity changes in year Additional investment. Dividends Total revenues Total expenses Donatello Company Leonardo Company Michelangelo Company Raphael Company $ 75,000 $110,000 48,000 (d) (g) $ 75,000 $150,000 (a) 60,000 45,000 (j) 100,000 (b) 137,000 200,000 (k) 55,000 75,000 (h) 80,000 40,000 (e) 130,000 140,000 (c) 15,000 10,000 15,000 6,000 (f) 14,000 10,000 350,000 420,000 (i) 500,000 335,000 382,000 342,000 (1) arnings (ending) Instructions a. Determine the missing amounts. (Hint: For example, to solve for (a), Assets Liabilities Stock- holders' equity $27,000.) = b. Prepare the retained earnings statement for Leonardo Company. Assume beginning retained earnings was $20,000. c. Write a memorandum explaining the sequence for preparing financial statements and the interrela- tionship of the retained earnings statement with the income statement and balance sheet.