In Exercise 5-12, directly compute retained earnings in a supporting schedule using the data of the problem and tie the supporting schedule into the balance sheet. Please also verify this tie-in using audit arrows.

Please have appropriate arithmetic formulas wherever possible.

E5-12 (L03) (Preparation of a Balance Sheet) Presented below is the trial balance of Scott Butler Corporation at December 31, 2017. Debit Credit Cash Sales Revenue Debt Investments (trading) (at cost, $145,000) Cost of Goods Sold Debt Investments (long-term) Equity Investments (long-term) Notes Payable (short-term) Accounts Pavable Selling Expenses Investment Revenue Land Buildings $ 197,000 S 8,100,000 153,000 4,800,000 299,000 277,000 90,000 455,000 2,000,000 63,000 260,000 1,040,000 136,000 Dividends Payable Accrued Liabilities Accounts Reccivable Accumulated Depreciation-Buildings Allowance for Doubtful Accounts Administrative Expenses Interest Expense Inventory 435,000 152,000 25,000 900,000 211,000 597,000 80,000 900,000 Notes Payable (long-term) Equipment Bonds Payable Accumulated Depreciation-Equipment Franchises Common Stock (S5 par) Treasury Stock Patents Retained Earnings Paid-in Capital in Excess of Par 600,000 1,000,000 60,000 160,000 1,000,000 191,000 195,000 78,000 80,000 $12,315,000 Totals $12,315,000