Question

Below is the retained Earnings account for the year 2020 for Concord Corp. $259,910 Retained earnings, January 1, 2020 Add: Gain on sale of investments (net of tax) Net income Refund on litigation with government, related to the year 2017 (net of tax) Recognition of income earned in 2019, but omitted from income statement in that year (net of tax) $43,510 86,810 23,910 27.710 181.940 441.850 37,310 62,310 Deduct: Loss on discontinued operations (net of tax) Write-off of goodwill (net of tax) Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2020 (net of tax) Cash dividends declared Retained earnings, December 31, 2020 25,510 34,310 159.440 $282,410 (a) Prepare a corrected retained earnings statement. Concord Corp. normally sells investments of the type mentioned above. F inventory was used in 2020 to compute net income. (List items that increase adjusted retained earnings first.) CONCORD CORP. Retained Earnings Statement For the Year Ended December 31, 2020 259910 Retained Earnings, January 1, as Adjusted 86810 Net Income /(Loss) 27710 < 374430 < -34310 25510 Less $ 3141610 Retained Earnings, December 31

Answer 1

CONCORD CORP. Retained Earnings Statement For the Year Ended December 31, 2020
Retained Earnings, January 1, as Reported	$ 259,910
Add: Correction of Error from Prior Period	$ 27,710
Less: Adjustment for Change in Accounting Principle	($ 25,510)
Retained Earnings, January 1, as Adjusted	$ 262,110
Add: Net Income / Loss (Working Note )	$ 54,610
Less: Cash Dividends Declared	($ 34,310)
Retained Earnings December 31	$ 282,410
Working Note :
Particulars	Amount (in $ )
Net Income	$ 86,810
Add: Gain on sale of investments (net of tax)	$ 43,510
Add:Refund on litigation with government, related to the year 2017 (net of tax)	$ 23,910
Less: Loss on discontinued operations (net of tax)	($ 37,310)
Less: Write-off of goodwill (net of tax)	($ 62,310)
Net Income / Loss	$ 54,610