****Please show calculations****

Macnam Corp. failed to record accrued salaries as follows:

Year Amount

2016 $165,000

2015 $110,000

2014 $80,000

Additionally, in 2015 Macnam included in ending inventory the following amount that was on consignment from a vendor:

Year Amount

2015 $37,000

Macnams Statement of Changes in Retained Earning as Originally Reported is:

				2016		2015		2014
Retained Earnings at January 1				$4,150,000		$3,650,000		$3,250,000
Net Income					$600,000		$500,000		$400,000
Retained Earnings at December 31				$4,750,000		$4,150,000		$3,650,000

Ignore any Income tax implications.

Note: The earliest year is presented first.

A) What journal entry should Macnam make at December 31, 2016? Assume the 2016 books have been closed.

	ACCOUNT DESCRIPTION

*A = Asset, L = Liability, E = Equity, R = Revenue. X = Expense, D = Dividend

B) Show the reconciliation of Net Income as originally reported to Restated Net Income:

				2016	2015		2014
Net Income as Originally Reported / Computed				$600,000	$500,000		$400,000
Describe Adjustments:
Net Income as Restated:

C). Complete Statement of Changes in Retained Earnings on Macnam's 2016 Financial Statements:

				2016	2015	2014
Retained Earnings at January 1 Original				$4,750,000	$3,650,000	$3,250,000
Prior Period Adjustment
Beginning Retained Earning as Adjusted
Net Income
Retained Earnings at December 31