Step # 3 (Work Sheet # 3) Calculations to Determine Ending Retain Earnings Balance as at 12/31/2019 i) Adjustments to net income: Prepaid Rent ( in December) Expensed (1/2 year of $ Expensed (2e)) $ Current Portion of Prepaid Insurance (1/2 year of $ Expensed (2b) ) Unrecorded Depreciation Expense (From 2c) Pretax Adjustment to Net Income (Additional Expenses) $ ii) Net Income Before Tax Revenue - Expenses - Pretax Adj. to Net Income = - $ $ = iii) Income Tax Payable = (Tax Rate) (Net Income) = 20 ($ = S iv) Net Income After Tax = $ - $ = V) Retain Earnings (RE) Ending = RE (1/1/x3) + NI After tax (iv) - dividends declared (1) = + $ - $ =