Use the data in P11-55B to prepare the Midler Cosmetics statement of retained earnings for the year ended December 31, 2014. Use the Statement of Retained Earnings for Maxim, Inc., in the End-of-Chapter Summary Problem (pages 637€“ 638) as a model.
In P11-55B, the following information was taken from the records of Midler Cosmetics, Inc., at December 31,2014:

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Dividends on common stock... $37,000 debit to Rctained Earning. $ 9,300 rest expens25,000 10,400 16,000 Prior-period adjustment-net of taxes Income tax expense (saving) Gain on lawsuit settlement. .35,950 Dividend revenue Continuing operations. Income from discontinued opcrations.... Extraordinary loss.4,300 Treasury stock, common 15,000 Geral expenses..81,000 628,000 6,100 (5,000 shares at cost). Sales reycnuc Income from discontinued Preferred stock, 6%, $30 par, Extraordinary los.14,000 Retained carnings, beginning, 20,000 as originally reported202,000 Selling expenses... 36,000 shares authorized Cost of goods sold314,200 390,000