Given the following information about a corporation's current year activities, compute the retained earnings for the current year. Retained earnings, December 31 (prior year)$280,000Cost of goods sold$90,000Other operating expenses$54,000Cash dividends$31,800Correction of understatement of net income in prior ?period (inventory error)$23,000Stock dividends$20,000Net income$36,000
What will be an ideal response?
Retained Earnings = $287,200
Supporting computations:
| Retained earnings, December 31 (prior year) | ? | $280,000 | ? |
| Correction of understatement of net income in | ? | ? | ? |
| Prior (inventory error) | ? | 23,000 | ? |
| Retained earnings, adjusted | ? | $303,000 | ? |
| Add: Net income | ? | 36,000 | ? |
| ? | ? | $339,000 | ? |
| Less: Cash dividends | $31,800 | ? | ? |
| Stock dividends | 20,000 | 51,800 | ? |
| Retained earnings, current year | ? | $287,200 | ? |
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