P4.7 (LO 4, 5) (Retained Earnings Statement, Prior Period Adjustment) Thefollowing is the retained earnings account for the year 2022 for Acadian Corp.Retained earnings, January 1, 2022$257,600Add:Gain on sale of investments$41,200Net income84,500Refund on litigation with government21,600Recognition of income in 2021, but omitted from income statementin that year25,400 172,700|430,300Deduct:Loss on discontinued operations35,000Write-off of goodwillCumulative effect on income of prior years in changing fromaverage-cost to FIFO inventory valuation in 202260,00023,200Cash dividends declared32,000 150,200|Retained earnings, December 31, 2022$280,100Instructionsa. Prepare a corrected retained earnings statement. (Ignore income tax effects.) FIFOinventory was used in 2022 to compute net income.b. State where the items that do not appear in the corrected retained earnings statementshould be shown.

Name: P4.7 (LO 4, 5) (Retained Earnings Statement, Prior Period Adjustment)
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Description: P4.7 (LO 4, 5) (Retained Earnings Statement, Prior Period Adjustment) Thefollowing is the retained earnings account for the year 2022 for Acadian Corp.Retained earnings, January 1, 2022$257,600Add:Gain on sale of investments$41,200Net income84,500Re

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ng is the retained earnings account for the year 2022 for Acadian Corp. ed earnings, January 1, 2022 on sale of investments $41,200 income 84,500 $257,60

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 56P

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