The Retained Earnings account of Merry Exams Morty Company shows the following debits and credits for the year 2020:

RETAINED EARNINGS
Date	Description	Debit	Credit	Balance
Jan. 1	Balance			726,400
a)	Loss from fire	5,250		721,150
b)	Write-off of goodwill	52,500		668,650
c)	Stock dividends distributed	140,000		528,650
d)	Loss on sale of equipment	48,300		480,350
e)	Officers’ compensation related to the income of prior periods – accrual overlooked	325,500		154,850
f)	Loss on retirement of preferred shares at more than issue price	70,000		84,850
g)	Paid in capital in excess of par		129,500	214,350
h)	Stock issuance expenses (related to letter g)	10,000		204,350
i)	Stock subscriptions defaults		8,470	212,820
j)	Gain on retirement of preferred stock at less than issue price		25,900	238,720
k)	Gain on early retirement of bonds		15,050	253,770
l)	Gain on life insurance policy settlement		10,500	264,270
m)	Correction of prior period error		50,050	314,320
n)	Effect of change in accounting policy – from FIFO to weighted average		100,000	414,320
o)	Dividends payable	25,000		389,320
p)	Loss on sale of treasury stock	20,000		369,320
q)	Proceeds from sale of donated stock		40,000	409,320
r)	Appraisal increase in land		250,000	659,320
s)	Appropriated for property acquisition	100,000		559,320

The entry to correct the Retained Earnings account will include:

Answer rating: 100% (QA)

A The entry to correct the Retained Earnings account will include a debit to Retained Earnings for the total amount of ... View the full answer