Use the data in Problem to prepare the Ahern Cosmetics statement of retained earnings for the year ended December 31, 2010.

Use the Statement of Retained Earnings for Maxim, Inc., in the End-of-Chapter Summary Problem as amodel.

Transcribed Image Text:

n common stock.$23,000 .25,000 9,000 15,000 Prior-period adjustment- debit to Retained Earnings 3,000 I 24,450 7,190 Interest expense Gain on lawsuit settlement... Dividend revenue Treasury stock, common Income tax expense (saving): Continuing operations2 Income from discontinued (4,000 shares at cot.12,000 80,000 Loss on sale of plant asse.13,000 Sales revenue.60,000 oss General expenses Sales revenue....) 560.0 Income from discontinued Retained earnings, beginning, operations18,000 as originally reported.... 193,000 Preferred stock, 10%, $15 par, 500 shares issued 7,500 Extraordinary loss32,000 314,000 Common stock, no par, 27,000 shares authorized and issued.380 Cost of goods sold..