Use the data in Problem to prepare the Daughtry 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.

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$24,000 30,000 .14,000 20,000 Prior-period adjustment- Dividends on common stock... Interest expense Gain on la wsuit settlement Dividend revenue Treasury stock, common debit to Retained Earnings 1,000 Income tax expense (saving) Continuing operations Income from discontinued 33,980 8,680 (12,280) 15,000 (3,000 shares at cost).. 17,000 85,000 610,000 Extraordinary loss Loss on sale of plant assets Income from discontinued General expenses Sales revenue Retained earnings, beginning, 21,000 as originally reported Preferred stock, 4%, $20 par, 3,000 shares issued Selling expenses Common stock, no par, 105,000 60,000 29,400 324,000 25,000 shares authorized and issued Cost of goods sold. 400,000