Garfield, Inc. began operations in 2019, and reported the following for its first three years of operations.

	2021	2020	2019
Net income/(loss)	$440,000	$425,000	($150,000)
Ending retained earnings/(deficit)	660,000	250,000	(150,000)

2022s books have not been closed. The draft income statement for 2022 shows net income of $395,000, and dividends of $40,000 were declared and paid in 2022.

During the 2022 review, the following errors are discovered:

1. An accrual of $5,000 of salaries payable was omitted at December 31, 2019.
2. A $15,000 equipment purchase on January 1, 2020 was charged immediately to expense. Garfield customarily depreciates similar assets over ten years, straight line with no salvage value.
3. Inventory at December 31, 2021 improperly excluded $17,500 of goods owned by Garfield held on consignment at remote locations.

Required:

1. Prepare any journal entries required in 2022 to correct the errors. Assume all errors are material.
2. Assume Garfield presents three years of comparative income statements in 2022 (2022, 2021, and 2020). What will it show as 2020 net income?
3. Assume Garfield does not present comparative financial statements. What will its 2022 stockholders equity statement show as Beginning retained earnings, as corrected?