The following account balances were included in the trial balance of Sheridan Corporation at June 30, 2020.

Sales revenue		$1,595,060		Depreciation expense (office furniture and equipment)		$7,879
Sales discounts		31,950		Property tax expense		7,245
Cost of goods sold		902,000		Bad debt expense (selling)		5,241
Salaries and wages expense (sales)		57,640		Maintenance and repairs expense (administration)		8,605
Sales commissions		99,290		Office expense		5,490
Travel expense (salespersons)		35,300		Sales returns and allowances		57,733
Delivery expense		21,900		Dividends received		41,600
Entertainment expense		15,100		Interest expense		17,830
Telephone and Internet expense (sales)		9,220		Income tax expense		92,040
Depreciation expense (sales equipment)		5,345		Depreciation understatement due to error2020 (net of tax)		17,126
Maintenance and repairs expense (sales)		6,774		Dividends declared on preferred stock		8,150
Miscellaneous selling expenses		4,879		Dividends declared on common stock		40,330
Office supplies used		3,250
Telephone and Internet expense (administration)		2,735

The Retained Earnings account had a balance of $352,440 at July 1, 2019. There are 73,980 shares of common stock outstanding.

A.) Prepare a retained earnings statement for the year ended June 30, 2020. (List items that increase adjusted retained earnings first.)

SHERIDAN CORPORATION Retained Earnings Statement June 30, 2020For the Year Ended June 30, 2020For the Quarter Ended June 30, 2020
Correction of Depreciation UnderstatementDividends Declared on Common StockDividends Declared on Preferred StockAdministrative ExpensesNet Income / (Loss)Retained Earnings, July 1, 2019, as AdjustedRetained Earnings, July 1, 2019, as ReportedRetained Earnings, June 30, 2020RevenuesOther Revenues and GainsOther Expenses and Losses		$
Correction of Depreciation UnderstatementDividends Declared on Common StockDividends Declared on Preferred StockAdministrative ExpensesNet Income / (Loss)Retained Earnings, July 1, 2019, as AdjustedRetained Earnings, July 1, 2019, as ReportedRetained Earnings, June 30, 2020RevenuesOther Revenues and GainsOther Expenses and Losses
Correction of Depreciation UnderstatementDividends Declared on Common StockDividends Declared on Preferred StockAdministrative ExpensesNet Income / (Loss)Retained Earnings, July 1, 2019, as AdjustedRetained Earnings, July 1, 2019, as ReportedRetained Earnings, June 30, 2020RevenuesOther Revenues and GainsOther Expenses and Losses
AddLess: Correction of Depreciation UnderstatementDividends Declared on Common StockDividends Declared on Preferred StockAdministrative ExpensesNet Income / (Loss)Retained Earnings, July 1, 2019, as AdjustedRetained Earnings, July 1, 2019, as ReportedRetained Earnings, June 30, 2020RevenuesOther Revenues and GainsOther Expenses and Losses
AddLess:
Correction of Depreciation UnderstatementDividends Declared on Common StockDividends Declared on Preferred StockAdministrative ExpensesNet Income / (Loss)Retained Earnings, July 1, 2019, as AdjustedRetained Earnings, July 1, 2019, as ReportedRetained Earnings, June 30, 2020RevenuesOther Revenues and GainsOther Expenses and Losses	$
Correction of Depreciation UnderstatementDividends Declared on Common StockDividends Declared on Preferred StockAdministrative ExpensesNet Income / (Loss)Retained Earnings, July 1, 2019, as AdjustedRetained Earnings, July 1, 2019, as ReportedRetained Earnings, June 30, 2020RevenuesOther Revenues and GainsOther Expenses and Losses
Correction of Depreciation UnderstatementDividends Declared on Common StockDividends Declared on Preferred StockAdministrative ExpensesNet Income / (Loss)Retained Earnings, July 1, 2019, as AdjustedRetained Earnings, July 1, 2019, as ReportedRetained Earnings, June 30, 2020RevenuesOther Revenues and GainsOther Expenses and Losses		$