Problem 2: Gondola Company showed the following charges and credits to retained earnings for 2021: Balance - January 1 Loss from fire Goodwill impairment Share dividend Loss on sale of equipment Compensation of prior period not accrued Loss on retirement of preference share at more than issue price Share premium Gain on early retirement of bonds Gain on life insurance settlement Correction of prior period error Net income for the year Appropriated for treasury shares during the year 2,600,000 50,000 250,000 700,000 200,000 500,000 350,000 600,000 100,000 450,000 400,000 3,000,000 1,000,000 Required: Prepare a statement of retained earnings for 2021.
Problem 2: Gondola Company showed the following charges and credits to retained earnings for 2021: Balance - January 1 Loss from fire Goodwill impairment Share dividend Loss on sale of equipment Compensation of prior period not accrued Loss on retirement of preference share at more than issue price Share premium Gain on early retirement of bonds Gain on life insurance settlement Correction of prior period error Net income for the year Appropriated for treasury shares during the year 2,600,000 50,000 250,000 700,000 200,000 500,000 350,000 600,000 100,000 450,000 400,000 3,000,000 1,000,000 Required: Prepare a statement of retained earnings for 2021.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2P
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