Reference no: EM132672406
Problem 1: Which of the following items will NOT appear in the retained earnings statement?
Option 1: correction of an error
Option 2: net loss
Option 3: change in accounting estimates
Option 4: stock dividends
Problem 2: Portland Corporation reports the following information:
Correction of understatement of depreciation expense
in prior years, net of tax...................................................................... $ 1,376,000
Dividends declared............................................................................ 1,024,000
Net income........................................................................................ 3,200,000
Retained earnings, January 1, 2020, as reported.................................. 6,400,000
Portland should report retained earnings at January 1, 2020, as adjusted at
Option 1: $8,576,000.
Option 2: $5,024,000.
Option 3: $9,952,000.
Option 4: $7,200,000.