Problem 7-2Gondola Company showed the following charges and credits to retained earnings for2019:Balance – January 1Loss from fireGoodwill impairmentStock dividend2,600,00050,000250,000700,000200,000500,000Loss on sale of equipmentCompensation of prior period not accruedLoss on retirement of preference share at more thanIssue price350,000600,000100,000450,000400,0003,000,0001,000,000Share premiumGain on early retirement of bonds payableGain on life insurance settlementCorrection of prior period error – creditNet income for the yearAppropriated for treasury shares during the yearRequired:Prepare a statement of retained earnings for 2019.

The statement of retained earnings is the one that is prepared as a part of the financial statement…

Gondola Company showed the following charges and credits to retained earnings for 2019: Balance – January 1 Loss from fire Goodwill impairment Stock dividend Loss on sale of equipment Compensation of prior period not accrued Loss on retirement of preference share at more than 2,600,000 50,000 250,000 700,000 200,000 500,000 - Issue price 350,000 600,000 100,000 450,000 400,000 3,000,000 1,000,000 Share premium Gain on early retirement of bonds payable Gain on life insurance settlement Correction of prior period error – credit Net income for the year Appropriated for treasury shares during the year Required: Prepare a statement of retained earnings for 2019.

Gondola Company showed the following charges and credits to retained earnings for 2019: Balance – January 1 Loss from fire Goodwill impairment Stock dividend Loss on sale of equipment Compensation of prior period not accrued Loss on retirement of preference share at more than 2,600,000 50,000 250,000 700,000 200,000 500,000 - Issue price 350,000 600,000 100,000 450,000 400,000 3,000,000 1,000,000 Share premium Gain on early retirement of bonds payable Gain on life insurance settlement Correction of prior period error – credit Net income for the year Appropriated for treasury shares during the year Required: Prepare a statement of retained earnings for 2019.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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