work B Question 6 of 11 - / 1.5 11 Prepare the revised retained earnings statement for 2020 and 2021, assuming comparative statements. (Ignore income taxes) SWEET INC. Retained Earnings Statement For the Year Ended 2021 2020 Retired Earnings, January 1. unadjusted 214700 ms Correction of Error for Inventory Overstatement 24800 Retained Earnings, January 1.djusted Add Net Income Less Dividende Retained Eaming December eTextbook and Media Save for Later Attempts: 0 of 10 used MacBook Air 1) 90 888 is * 10 71 FZ 13 F # 3 $ 4 % 5 unde a > & 7 00* 8 6 9 2 0 Y U a R T I 0 Y P E W S D F UL G H J ework B Question 6 of 1 - / 1.5 1 In 2021, Sweet Inc. decided to switch its depreciation method from sum-of-the-years'digits the straight-line method. The assets were purchased at the beginning of 2020 for $107.000 with an estimated useful life of 4 years and no salvage value (The 2021 income statement contains depreciation expense of $ 32.100 on the assets purchased at the beginning of 2020) In 2021. the company discovered that the ending inventory for 2020 was overstated by $ 24,800, ending inventory for 2021 is correctly stated 2. Prepare the revised retained earnings statement for 2020 and 2021, assuming comparative statements. Ignore income taxes.) SWEET INC. Retained Earnings Statement For the Year Ended 2021 2020 Retained Emning. January 1 uradjusted 214700 Less Correction of Error forloventory Overstatement 24800 Retained Earrings, January 1. adjusted And Net Incom Divident MacBook Air 4) 988 80p . ! 11 A * # 3 $ 4 % 5 on & 7 N 6 8 - 9 N W E R Y T Y P U 1 o 0 S D F G . J Question 6 of 1 - /1.5 Current Attempt in Progress Presented below are the comparative Income and retained earnings statements for Sweeting for the years 2020 and 2021. 2021 2020 Sales $310,000 $275,000 Cost of sales 180,000 135,000 Gross profit 130,000 140,000 Expenses 88.500 46,800 Net Income $ 41.400 $93.200 Retained earnings (Jan. 1) $ 142,200 $72.500 Net Income 41.400 93,200 Dividends (29.500 (23,500) Retained earnings (Dec. 31) $ 154,100 $ 142.200 The following additional information is provided 1. In 2021. Sweet in decided to switch its depreciation method from sum of the years digits to the straight-line method. The assets were purchased at the beginning of 2020 for $107.000 with an estimated useful life of 4 years and no salvage value (The 2021 Income statement contains depreciation expense of 532.100 on the sets purchased at the beginning of 2020 MacBook Air BO ag 44 19 300 TV 73 * # 3 $ 4 % 5
