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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Problem 1-65A Relationships Among Financial Statements Carson Corporation reported the following amounts for assets and liabilities at the beginning and end of a recent year. Required: Calculate Carsons net income or net loss for the year in each of the following independent situations: Carson declared no dividends. and its common stock remained unchanged. Carson declared no dividends and issued additional common stock for $40,000 cash. Carson declared dividends totaling $5000 and its common stack remained unchanged. Carson declared dividends totaling $20,000 and issued additional common stock for $35,000.
Problem 1-65B Relationships Among Financial Statements Leno Corporation reported the following amounts for assets and liabilities at the beginning and end of a recent year. Required: Calculate Lenos net income or net loss for the year in each of the following independent situations: Leno declared no dividends, and its common stock remained unchanged. Leno declared no dividends and issued additional common stock for $15,000 cash. Leno declared dividends totaling $10,000 and its common slack remained unchanged. Leno declared dividends totaling $12,000 and issued additional common stock for $20,000.
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