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The ledger of Sunland Limited at October 31, 2021, contains the following summary data: Cash dividends-common $123,000 Common shares 648,000 Depreciation expense 95,000 Service revenue
The ledger of Sunland Limited at October 31, 2021, contains the following summary data: Cash dividends-common $123,000 Common shares 648,000 Depreciation expense 95,000 Service revenue 1,469,000 Operating expenses 929,000 Interest expense 58,000 Retained earnings, November 1, 2020 573,000 Your analysis reveals the following additional information: 1. The company has a 25% income tax rate. 2. On March 19, 2021, Sunland discovered an error made in the previous fiscal year. A $59,000 payment of a note payable had been recorded as interest expense. 3. On April 10, 2021, common shares costing $79,000 were reacquired for $103,000. This is the first time the company has reacquired common shares. SUNLAND LIMITED Statement of Retained Earnings Year Ended October 31, 2021 Balance, November 1, 2020 as Previously Reported $ Add : Profit/(Loss) Reacquired Common Shares Add : Balance, November 1 as Adjusted Less : $ Balance October 31, 2021 $
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