Part B (2 marks)

The following section is taken from Lucas Ltds statement of financial position at 31 December, 2021.

Share capital	$8 000 000
Reserves	$420 000
Retained earnings	$71 000

Cash dividends declared for the year ended 31 December 2021 were $21 000.

The directors approved a transfer of $10 000 from reserves to retained earnings. This was recorded in the ledger and is the only item affecting reserves during the year.

Lucas Ltds profit for the year ended 31 December 2021 was $80 000.

Required:

Prepare a statement of the changes in retained earnings as at 31 December 2021. (2 marks)

(Type your response directly into the template in the text box below.)