Question

Oriole Corporation has retained earnings of $682,100 at January 1, 2020. Net income during 2020 was $1,558,700, and cash dividends declared and paid during 2020 totaled $81,300. Prepare a retained earnings statement for the year ended December 31, 2020. Assume an error was discovered: land costing $89,160 (net of tax) was charged to maintenance and repairs expense in 2019.

Answer 1

$2,248,660

Step-by-step explanation:

According to the scenario, computation of the given data are as follows,

Particulars Amount

Retained Earning $682,100

Correction of repairs expense (Add) $89,160

Net income (Add) $1,558,700

Dividend Paid (Less) $81,300

Net retained earning $2,248,660