Silver Ltd is preparing bank reconciliation statement for January. The following items are identified.

Outstanding deposit $3 200

Outstanding EFTs $800

Cash balance as per company records $12 490

Cash balance as per bank statement $10 900

The bank mistakenly included a deposit of $900 to Silver Ltds bank statement that related to Watsonia Stores.

The bank correctly credited $1 230 to Silver Ltd. However, the cash receipts journal entry was incorrectly made for $1 320.

Required:

Prepare the bank reconciliation statement for January.

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.