Statement of Changes in Equity

Prepare a statement of retained earnings for 2020. Problem 5-2 (LAA) Gondola Company showed the following charges and credits to retained earnings for 2020: Balance - January 1 2,600,000 Loss from fire 50,000 Goodwill impairment 250,000 Stock dividend 700,000 Loss on sale of equipment 200,000 Compensation of prior period not accrued 500,000 Loss on retirement of preference share at more than issue price 350,000 Share premium 600,000 Gain on early retirement of bonds payable 100,000 Gain on life insurance settlement 450,000 Correction of prior period error - credit 400,000 Net income for the year 3,000,000 Appropriated for treasury shares during the year 1,000,000 Required: Prepare a statement of retained earnings for 2020. 167