Reference no: EM132503512

Scotti Company had the following transactions during the year 2018:

1. On January 1, 2018, its first year of business, Scotti Company issued 800,000 shares of $5 par value Common Stock for $18 per share.
2. On July 5, 2018, Scotti repurchased 200,000 shares at $20 per share.
3. On August 4, 2018, Scotti reissued 50,000 of its Treasury shares at $25 per share.
4. On September 15, 2018, Scotti reissued 50,000 of its Treasury shares at $23 per share.
5. On December 29, Scotti reissued the remaining 100,000 shares for $15.50 per share.
6. Scotti earned $420,000 of net income throughout the year and did not pay any dividends in its first year.

Question 1: What is the balance in the Retained Earnings account on December 31, 2018? (Hint: Write down the entries for all the transactions since August 4th and keep track of the balance in the Paid-in Capital - Treasury Stock account).