Chapter 14, Problem 12Q

To determine

Retained Earnings: The profit of the company which is retained for further business operations is called as retained earnings.

Stockholder’s Equity: Stockholders’ equity is also known as owner’s equity. It is a part of balance sheet of the business. It indicates the capital contributed by the owner of his business.

To determine: Whether both the beginning and ending balances in retained earnings are shown in stockholders’ equity section.