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.