Reference no: EM132807963

Myron Corporation, a private company reporting under ASPE, had the following shareholders' equity accounts at December 31, 2019:

Common shares, 75,000 issued................................................ $300,000
Retained earnings................................................................................... 750,000

During 2020, the following events occurred:

1. On February 1, the company declared and paid a $0.50/share cash dividend.
2. On June 10, the company split the common shares two for one.
3. On December 1, the company declared and paid a $0.40/share cash dividend.
4. At December 31, the company reported a loss of $106,000 for the year.

Instructions:

Problem (a) Show a Statement of Retained Earnings for the year ended December 31, 2020.

Problem (b) If Myron Corporation was a publicly-traded corporation, would it still show a Statement of Retained Earnings? If not, what statement would it prepare instead?